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A partial list of the accounts and ending account balances taken from the post-closing trial balance of Jordan Corporation on December 31, 2019, is as follows: Account Title Retained Earnings Bonds Payable Common Stock Subscribed Long-Term Investments in Stock Additional Paid-in Capital on Common Stock Amount $410,000 220,000 60,000 210,000 460,000

A partial list of the accounts and ending account balances taken from the post-closing trial balance of Jordan Corporation on December 31, 2019, is as follows: Account Title Retained Earnings Bonds Payable Common Stock Subscribed Long-Term Investments in Stock Additional Paid-in Capital on Common Stock Amount $410,000 220,000 60,000 210,000 460,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Contributed Capital A partial list of the accounts and ending account balances taken from the post-closing trial balance of Jordan Corporation on December 31, 2019, is as follows: Account Title Retained Earnings Bonds Payable Common Stock Subscribed Amount $410,000 220,000 60,000 Long-Term Investments in Stock Additional Paid-in Capital on Common Stock Premium on Bonds Payable Common Stock Preferred Stock Subscribed Additional Paid-in Capital on Preferred Stock Preferred Stock Additional Paid-in Capital from Treasury Stock Unrealized Increase in Value of Securities Available for Sale Common Stock Option Warrants Additional information: 1. Common stock is no-par, with a stated value of $10 per share. 90,000 shares are authorized, 50,000 shares are issued and outstanding, and 6,000 shares have been subscribed at a price of $28 per share. 2. Preferred stock has a $50 par value, 8,000 shares are authorized, 6,000 shares are issued and outstanding, and 700 shares have been subscribed at a price of $70 per share. Each share is cumulative, is convertible into 5 shares of common stock, and pays a 7% annual dividend. Dividends are not in arrears. 3. Bonds payable mature on July 1, 2028. They carry a 12% annual interest rate, payable semiannually. The premium is being amortized using the straight-line method. 210,000 460,000 30,000 500,000 35,000 112,000 300,000 4,000 3,000 20,000 Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Jordan.
Transcribed Image Text:Contributed Capital A partial list of the accounts and ending account balances taken from the post-closing trial balance of Jordan Corporation on December 31, 2019, is as follows: Account Title Retained Earnings Bonds Payable Common Stock Subscribed Amount $410,000 220,000 60,000 Long-Term Investments in Stock Additional Paid-in Capital on Common Stock Premium on Bonds Payable Common Stock Preferred Stock Subscribed Additional Paid-in Capital on Preferred Stock Preferred Stock Additional Paid-in Capital from Treasury Stock Unrealized Increase in Value of Securities Available for Sale Common Stock Option Warrants Additional information: 1. Common stock is no-par, with a stated value of $10 per share. 90,000 shares are authorized, 50,000 shares are issued and outstanding, and 6,000 shares have been subscribed at a price of $28 per share. 2. Preferred stock has a $50 par value, 8,000 shares are authorized, 6,000 shares are issued and outstanding, and 700 shares have been subscribed at a price of $70 per share. Each share is cumulative, is convertible into 5 shares of common stock, and pays a 7% annual dividend. Dividends are not in arrears. 3. Bonds payable mature on July 1, 2028. They carry a 12% annual interest rate, payable semiannually. The premium is being amortized using the straight-line method. 210,000 460,000 30,000 500,000 35,000 112,000 300,000 4,000 3,000 20,000 Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Jordan.
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