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Exercise 14-11 The following accounts appear in the ledger of Horner Inc. after

ID: 2549591 • Letter: E

Question

Exercise 14-11 The following accounts appear in the ledger of Horner Inc. after the books are closed at December 31. Common Stock, no par, $3 stated value, 393,000 shares authorized; 282,000 shares issued Common Stock Dividends Distributable $846,000 29,000 130,000 153,000 814,000 89,700 Paid-in Capital in Excess of Stated Value-Common Stock Preferred Stock, $6 par value, 8%, 36,000 shares authorized: 25,500 shares issued Retained Earnings Treasury Stock (11,500 common shares Paid-in Capital in Excess of Par-Preferred Stock 350,000 Prepare the stockholders' equity section at December 31, assuming retained earnings is restricted for plant expanse $100,000. (Enter account name only and do not provide descriptive information.) HORNER INC Balance Sheet (Partial). t Prvacy Policy I 2000-2018 20hn Wley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons.Inc. - Fe F2 80 2 3 4

Explanation / Answer

Capital stock

Preferred Stock ($6 par value, 8%,

36000 shares authorized,

25000 shares issued)                                                      $ 1,53,000

Common Stock (no-par, $3 stated value,

393000 shares authorized,

282000 shares issued)                                                    $ 8,46,000

Total capital stock $9,99,000

Additional paid-in capital

Paid-in Capital in Excess of Par Value - Preferred Stock           $ 350000

Paid-in Capital in Excess of Stated Value - Common Stock $ 1,30,000 $ 4,80,000

Total paid-in capital $ 14,79,000

Retained Earnings $ 8,14,000

Total paid-in capital and retained earnings $ 22,93,000

Less: Treasury Stock (11,500 common shares) $ 89,700

Total stockholders' equity $ 22,03,300

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