Question

chap 12-17
instructions

The following accounts and their balances were selected from the adjusted 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 9

. 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

Common stock dividends

Common stock, no par, $16 stated value; 375,000 shares authorized, 317,000 shares issued

Excess of issue price over par

Excess of issue price over stated value

From sale of treasury stock

Increase in retained earnings

Paid-in capital, common stock

Paid-in capital, preferred stock

Preferred stock dividends

Preferred 2% stock, $105 par; 85,000 shares authorized, 67,000 shares issued

Total contributed capital

Total paid-in capital

Prepare the Paid-In Capital portion of the Stockholders’ Equity section of the balance sheet using Method 1 of

Exhibit 9

. 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
Paid-in Capital:
Preferred 2% stock, $105 par; 85,000 shares authorized, 67,000 shares issued	$7,035,000
Excess of issue price over par	$182,000
Paid-in capital, preferred stock [$7,035,000 + $182,000\		$7,217,000
Common stock, no par, $16 stated value; 375,000 shares authorized, 317,000 shares issued	$5,072,000
Excess of issue price over stated value	$480,000
Paid-in capital, common stock [$5,072,000 + $480,000]		$5,552,000
From sale of treasury stock		$44,300
Total paid-in capital [$7,217,000 + $5,552,000 + $44,300]		$12,813,300