Capital Northeast Corporation’s post-closing trial balance at December 31, 2012,
ID: 2492195 • Letter: C
Question
Capital Northeast Corporation’s post-closing trial balance at December 31, 2012, was as follows. CAPITAL NORTHEAST CORPORATION POST-CLOSING TRIAL BALANCE December 31, 2012 Dr. Cr. Accounts payable $668,000 Accounts receivable $605,000 Accumulated depreciation-equipment 450,000 Additional paid-in capital-common In excess of par value 1,900,000 From sale of treasury stock 35,000 Allowance for doubtful accounts 20,000 Equipment 6,800,000 Cash 260,000 Common stock ($1 par value) 500,000 Dividends payable on common stockcash 50,000 Inventories 750,000 Investments 2,500,000 Preferred stock ($100 par value) 6,500,000 Prepaid insurance 65,000 Retained earnings 982,000 Treasury stock-common at cost 125,000 Totals $11,105,000 $11,105,000 At December 31, 2012, Capital Northeast had the following number of common and preferred shares. Common Preferred Authorized 2,500,000 1,000,000 Issued 500,000 65,000 Outstanding 490,000 65,000 The dividends on preferred stock are 6% cumulative. In addition, the preferred stock has a preference in liquidation of $102 per share. Instructions Prepare the stockholders’ equity section of Capital Northeast’s balance sheet at December 31, 2012
Explanation / Answer
CAPITAL North East Corporation Stockholders'Equity section As on Dec 31.2012. Details Amt $ Common Stock $1 par value, (authorised 2500000,issued 500000,outstanding 490000) 500,000 Additional Paid in Capital -Common in excess of par value 1,900,000 Preferred stock ($100 par value)(Authorised 1000000, issued 65000, outstanding 65000) 6,500,000 Additional Paid in Capital -From sale of treasury stock 35,000 Reatined Earning 982,000 Treasury Stock -Common (at cost) (125,000) Total Stock Holders'Equity 9,792,000
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