Question

Exercise 15-17

Splish Corporation’s post-closing trial balance at December 31, 2017, is shown as follows.

SPLISH CORPORATION POST-CLOSING TRIAL BALANCE DECEMBER 31, 2017
		Dr.		Cr.
Accounts payable				$ 467,300
Accounts receivable		$ 457,000
Accumulated depreciation—buildings				197,000
Additional paid-in capital in excess
of par—common				1,229,000
From treasury stock				176,000
Allowance for doubtful accounts				30,000
Bonds payable				324,000
Buildings		1,503,000
Cash		191,000
Common stock ($1 par)				202,000
Dividends payable (preferred stock—cash)				3,700
Inventory		597,000
Land		435,000
Preferred stock ($50 par)				450,000
Prepaid expenses		38,000
Retained earnings				326,000
Treasury stock (common at cost)		184,000
Totals		$3,405,000		$3,405,000

At December 31, 2017, Splish had the following number of common and preferred shares.

		Common		Preferred
Authorized		606,000		54,000
Issued		202,000		9,000
Outstanding		194,000		9,000

The dividends on preferred stock are $4 cumulative. In addition, the preferred stock has a preference in liquidation of $50 per share.

Prepare the stockholders’ equity section of Splish’s balance sheet at December 31, 2017. (Enter account name only and do not provide descriptive information.)

Answer 1

Splish Corporation
Stockholders' Equity
December 31, 2017
Capital stock
Preferred stock, $4 cumulative, par value $50
per share; authorized 54,000 shares, issued and
outstanding 9,000 shares	$ 450000
Common stock, par value $1 per share, authorized
606,000 shares, issued 202,000 shares, and
outstanding 194,000 shares	$ 202000
Total capital stock	$ 652000
Additional paid-in capital -
In excess of par value	$ 1229000
From sale of treasury stock	$ 176000
Total paid-in capital	$ 2057000
Retained earnings	$ 326000
Total paid-in capital and retained earnings	$ 2383000
Less: Treasury stock, 8,000 shares at cost	$ 184000
Total stockholders' equity	$ 2199000