Question

Exercise 15-17 Riverbed Corporation’s post-closing trial balance at December 31, 2017, is shown as follows. RIVERBED CORPORATION POST-CLOSING TRIAL BALANCE DECEMBER 31, 2017 Dr. Cr. Accounts payable $ 345,900 Accounts receivable $ 488,000 Accumulated depreciation—buildings 183,000 Additional paid-in capital in excess of par—common 1,380,000 From treasury stock 169,000 Allowance for doubtful accounts 33,000 Bonds payable 273,000 Buildings 1,530,000 Cash 172,000 Common stock ($1 par) 180,000 Dividends payable (preferred stock—cash) 4,100 Inventory 578,000 Land 417,000 Preferred stock ($50 par) 550,000 Prepaid expenses 42,000 Retained earnings 282,000 Treasury stock (common at cost) 173,000 Totals $3,400,000 $3,400,000 At December 31, 2017, Riverbed had the following number of common and preferred shares. Common Preferred Authorized 540,000 66,000 Issued 180,000 11,000 Outstanding 176,000 11,000 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 Riverbed’s balance sheet at December 31, 2017. (Enter account name only and do not provide descriptive information.)

Answer 1

RIVERBED CORPORATION
Stockholders' Equity
31-Dec-17
Capital stock
Preferred stock, $4 cumulative, par value $50 per share; authorized 66,000 shares, issued and outstanding 11,000 shares	$550,000.00
Common stock, par value $1 per share, authorized 540,000 shares, issued 180,000 shares, and outstanding 176,000 shares	$180,000.00
Total capital stock	$730,000.00
Additional paid-in capital -In excess of par value	$1,380,000.00
From sale of treasury stock	$169,000.00
Total paid-in capital		$2,279,000.00
Retained earnings		$282,000.00
Total paid-in capital and retained earnings		$2,561,000.00
Less: Treasury stock, 4,000 shares at cost		-$173,000.00
Total stockholders' equity		$2,388,000.00