Question

Foley Corporation has the following capital structure ar the begining of the year: 4% preferred stock...

Foley Corporation has the following capital structure ar the begining of the year:
4% preferred stock $50 par value 20000 shares authorized 7000 shares issued and outstanding $350000
Common stock $10 par value 60000 shares authorized 40000 shares issued and outstanding 400000
Paid in Capital in excess par 112000
total paid in capital 862000
retained earnings 432000
total stockholders equity 1294000

1. Construct the stockholders equity section incorporating all the above information.

Homework Answers

Answer #1
Ans. FOLEY   CORPORATION
Statement of Stockholder's Equity (partial)
Particulars Amount Amount
Paid in capital:
Preferred 4% stock, $50 par
(20,000 shares authorized and 7,000 shares issued) $350,000
Common Stock, $10 par value
(60,000 shares authorized and 40,000 shares issued) $400,000
Paid in capital in excess of par - Common stock $112,000
Total paid in capital $862,000
Retained earnings $432,000
Total Stockholder's Equity $1,294,000
*All calculations (preferred and common) are made on shares issued and outstanding.
Preferred stock = Preferred shares issued * Par value
7,000 * $50   = $350,000
Common stock = Common shares issued and outstanding * Par value
40,000 * $10   = $400,000
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