A partial listing of accounts and ending balances for Carver, Inc., on December 31, 2020, is shown below: Investments in long-term notes receivable $40,000 Bonds payable 300,000 Temporary investment in equity securities available for sale 120,000 Premium on bonds payable 26,000 Common stock 180,000 Subscriptions receivable: common stock 120,000 Additional paid-in capital from preferred stock conversion 24,000 Retained earnings 650,000 Preferred stock 300,000 Long-term investment in equity securities available for sale 150,000 Additional paid-in capital on common stock 910,000 Common stock subscribed 20,000 Goodwill 46,000 Donated capital 35,000 Preferred stock subscribed 50,000 Additional paid-in capital on preferred stock 45,000 Following is additional information relative to the above accounts: The preferred stock is 8% cumulative with par value of $50. For the preferred stock, 10,000 shares have been authorized, 6,000 shares are issued and outstanding, and 1,000 shares have been subscribed at a price of $65 per share. Each share of preferred stock is convertible into four shares of common. Bonds payable mature on September 30, 2024. They have a stated interest rate of 10%, payable semiannually. The straight-line method is used to amortize the premium. Common stock has a par value of $4 per share. For the common stock, 60,000 shares have been authorized, 45,000 shares are issued and outstanding, and 5,000 shares have been subscribed at $32 per share. Required: Prepare the contributed capital section of the December 31, 2020 balance sheet for Carver, Inc

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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A partial listing of accounts and ending balances for Carver, Inc., on December 31, 2020, is shown below:

Investments in long-term notes receivable	$40,000
Bonds payable	300,000
Temporary investment in equity securities available for sale	120,000
Premium on bonds payable	26,000
Common stock	180,000
Subscriptions receivable: common stock	120,000
Additional paid-in capital from preferred stock conversion	24,000
Retained earnings	650,000
Preferred stock	300,000
Long-term investment in equity securities available for sale	150,000
Additional paid-in capital on common stock	910,000
Common stock subscribed	20,000
Goodwill	46,000
Donated capital	35,000
Preferred stock subscribed	50,000
Additional paid-in capital on preferred stock	45,000

Following is additional information relative to the above accounts:

The preferred stock is 8% cumulative with par value of $50. For the preferred stock, 10,000 shares have been authorized, 6,000 shares are issued and outstanding, and 1,000 shares have been subscribed at a price of $65 per share. Each share of preferred stock is convertible into four shares of common.
Bonds payable mature on September 30, 2024. They have a stated interest rate of 10%, payable semiannually. The straight-line method is used to amortize the premium.
Common stock has a par value of $4 per share. For the common stock, 60,000 shares have been authorized, 45,000 shares are issued and outstanding, and 5,000 shares have been subscribed at $32 per share.

Required:
Prepare the contributed capital section of the December 31, 2020 balance sheet for Carver, Inc

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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