SHOW CALCULATIONS AND FORMULAS for problem OR NO CREDIT GIVEN 3. The following i

ID: 2540113 • Letter: S

Question

SHOW CALCULATIONS AND FORMULAS for problem OR NO CREDIT GIVEN

3. The following information is from the accounts of Tiffany Corporation at December 31, 2017 Common Stock, $6 par value, 500,000 shares authorized, Paid-in Capital in Excess of Par Value--Common Stock Preferred stock, $50 par value, 10%, 50,000 shares $2, 400,000 600,000 800,000 903,000 75,000 300,000 20,000 authorized Retained Earnings at January 1, 2017 Treasury Stock (15,000 common shares) Paid-in Capital in Excess of Par Value--Preferred Stock Cash dividends declared on preferred stock Prior period adjustment that was recorded as a credit to Retained Earnings for an error discovered from 2014.. 7,000 Net income for 2017 350,000 INSTRUCTIONS a. Prepare a statement of retained earnings at December 31, 2017 b. Prepare the stockholders' equity section at December 31, 2017

Explanation / Answer

Answer

Opening balance Jan 1, 2017

$903000

Add: Net Income 2017

$350000

Less: Cash dividends

$20000

Less: Prior Period 'credit' adjustment

$7000

Closing balance Dec 31, 2017

$1226000

Amount (in $)

Common Stock $6 par value, 500000 shares authorised, 400000 issued

$2400000

Preferred Stock, $50 par value, 10%, 50000 shares authorised, 16000 issued

$800000

Paid in Capital in excess of Par value-Common Stock

$600000

Paid in Capital in excess of Par value-Preferred Stock

$300000

Total Stock capital

$4,100,000

Retained Earnings Dec 31, 2017

$1226000

Total

$5,326,000

(Less) Treasury Stock 15000 shares

$75,000

Total Stockholder's Equity

$5,251,000