Question

The following accounts and their balances were selected from the unadjusted trial balance of Point Loma Group Inc., a freight forwarder, at October 31, the end of the current fiscal year:

1	Common Stock, no par, $16 stated value	$5,072,000.00
2	Paid-In Capital from Sale of Treasury Stock	44,300.00
3	Paid-In Capital in Excess of Par-Preferred Stock	182,000.00
4	Paid-In Capital in Excess of Stated Value-Common Stock	480,000.00
5	Preferred 2% Stock, $105 par	7,035,000.00
6	Retained Earnings	38,645,000.00

Prepare the Paid-In Capital portion of the stockholders’ equity section of the balance sheet using Method 1 of

Exhibit 8

. There are 375,000 shares of common stock authorized and 85,000 shares of preferred stock authorized. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Amount Descriptions

Amount Descriptions
Common stock dividends
Common stock, no par, $16 stated value; 375,000 shares authorized, 317,000 shares issued
Excess over par
From sale of treasury stock
Increase in retained earnings
Preferred stock dividends
Paid-in capital, preferred stock
Paid-in capital, common stock
Preferred 2% stock, $105 par; 85,000 shares authorized, 67,000 shares issued
Total paid-in capital

Stockholders’ Equity

Prepare the Paid-In Capital portion of the stockholders’ equity section of the balance sheet using Method 1 of

Exhibit 8

. There are 375,000 shares of common stock authorized and 85,000 shares of preferred stock authorized. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Point Loma Group Inc.

Stockholders’ Equity (Paid-In Capital Section)

October 31, 20XX

1	Paid-in capital:
2
3
4
5
6
7
8
9

Answer 1

Point Loma Group Inc.

Stockholders’ Equity (Paid-In Capital Section)

October 31, 20XX

1	Paid-in capital:
2	Paid in capital, Preferred Stock
3	Preferred 2% stock, $105 par; 85,000 shares authorized, 67,000 shares issued	7035000
4	Excess over par	182000	7217000
5	Paid in capital Common Stock
6	Common stock, no par, $16 stated value; 375,000 shares authorized, 317,000 shares issued	5072000
7	Excess over par	480000
8	From sale of treasury stock	44300	5596300
9	Total paid in capital		12813300