11BE Stowe Company鈥檚 December 31, 2... [FREE SOLUTION]

Chapter 5: 11BE (page 239)

Stowe Company鈥檚 December 31, 2017, trial balance includes the following accounts: Investment in Common Stock $70,000, Retained Earnings $114,000, Trademarks $31,000, Preferred Stock $152,000, Common Stock $55,000, Deferred Income Taxes $88,000, Paid-in Capital in Excess of Par鈥擟ommon Stock $174,000, and Noncontrolling Interest $63,000. Prepare the stockholders鈥� equity section of the balance sheet.

Short Answer

Expert verified

The stockholder鈥檚 equity section of the balance sheet totals$558,000.

Step by step solution

Definition of Additional Paid-in-Capital

The excess amount received by the business entity for issuing shares in excess of the par value of the shares is reported in the accounts as additional paid-up capital under the equity side of the balance sheet.

Stockholder’s Equity Section

Particular	Amount $
Common stock	$55,000
Preferred stock	152,000
Paid-in-capital in excess of par 鈥� Common stock	174,000
Retained earnings	114,000
Non-Controlling interest	63,000
Total stockholder鈥檚 equity	$558,000

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UHURA Company
Balance Sheet
For the year ended 2017
Current assets
Cash	\(230,000
Accounts receivables (Net)	340,000
Inventory (Lower of average cost or market)	401,000
Equity investment (Trading)	140,000

Property, Plant and Equipment
Building (net)	570,000
Equipment (net)	160,000
Land held for future use	175,000

Intangible assets
Goodwill	80,000
Cash surrender value of life insurance	90,000
Prepaid expenses	12,000

Current liabilities
Account payable	135,000
Note payable	125,000
Pension obligation	82,000
Rent payable	49,000
Premium on bond payable	53,000
Long-term Liabilities
Bond payable	500,000
Stockholders equity
Common stock \)1 par, authorized 400,000 shares, issued 290,000	290,000
Additional paid in capital	160,000
Retained earnings

FONZARELLI CORPORATION
BALANCE SHEET (PARTIAL)
DECEMBER 31, 2018
Assets
Cash		\(100,000
Unclaimed payroll check		27,500
Debt investment (trading) (fair value \)30,000) at cost		37,000
Accounts receivables (less bad debt reserves)		75,000
Inventory鈥攁t lower-of-cost (determined by the next-in, first-out method) or net realizable value		240,000
Total current assets		479,500

Tangible assets
Land (less accumulated depreciation)		80,000
Building and equipment	\(800,000
Less: Accumulated depreciation	(250,000)	550,000
Net tangible assets		630,000

Long-term investment
Stock and bonds		100,000
Treasury stock		70,000
Total long-term investment		170,000

Other assets
Discount on bonds payable		19,400
Sinking funds		975,000
Total other assets		994,400
Total assets		\)2,273,900

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Short Answer

Step by step solution

Definition of Additional Paid-in-Capital

Stockholder’s Equity Section

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