Question

The following table presents the long-term liabilities and stockholders’ equity of Information Control Corp. one year ago:

Long-term debt	$	65,800,000
Preferred stock		4,080,000
Common stock ($1 par value)		15,800,000
Capital surplus		45,800,000
Accumulated retained earnings		135,800,000

  
During the past year, the company issued 10.8 million shares of new stock at a total price of $59.6 million, and issued $35.8 million in new long-term debt. The company generated $10.6 million in net income and paid $2.8 million in dividends.

Prepare the current balance sheet reflecting the changes that occurred at the company during the year. (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g., 1,234,567.)

INFORMATION CONTROL CORP. Current Balance Sheet
(Click to select)Accumulated retained earningsLong-term debtPreferred stockCapital surplusAccounts payableCommon stock	$
Total long-term debt	$
Shareholders' equity
(Click to select)Accounts payableCapital surplusCommon stockAccumulated retained earningsPreferred stockLong-term debt	$
(Click to select)Accumulated retained earningsAccounts payableCommon stockCapital surplusLong-term debtPreferred stock
(Click to select)Preferred stockCapital surplusCommon stockAccumulated retained earningsLong-term debtAccounts payable
(Click to select)Common stockAccumulated retained earningsPreferred stockCapital surplusLong-term debtAccounts payable
Total equity	$
Total liabilities & equity	$

  

Answer 1

Control Corp.
Current Balance sheet
Long Term Debt*	$101600000
Shareholder’s Equity
Preferred stock	$4080000
Common stock($1 par value)**	$26600000
Capital surplus***	$94600000
Accumulated Retained Earnings****	$143600000
Total Equity	$268880000
Total Liabilities and Equity	$370480000

Calculations are shown below:

*Long Term debt= Existing debt of $65800000 + New Issued $35800000= $101600000

** Common Stock= Existing $15800000 + New issued $10800000 = $26600000

*** Capital Surplus= Existing $45800000 + ($59600000- $10800000)= $94600000

**** Accumulated Retained Earnings= Existing $135800000 + (10600000- 2800000)= $143600000