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Based on the problem, what amount of preferred stock on December 31, 2015

Based on the problem, what amount of preferred stock on December 31, 2015

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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Based on the problem, what amount of preferred stock on December 31, 2015
The stockholders equity of Willpower Corporation showed the following data on December 31, 2004: 12% preferred stock, P30 par, 160,000 shares issued and outstanding P4,800,000 Common stock, P50 par, 160,000 shares issued and outstanding 8,000,000 Premium on preferred stock 1,000,000 Premium on common stock 3,000,000 Retained earnings 5,500,000 The 2005 transactions of the company affecting its stockholders' equity are summarized chronologically as follows: 1. Issued 20,000 shares of preferred stock at P40. 2. Issued 100,000 shares of common stock at P80. 3. Retired 4,000 shares of preferred stock at P45. 4. Purchased 12,000 shares of its common stock at P60. 5. Split common stock two for one. 6. Reissued 10,000 shares of treasury stock - common at P45. 7. Stockholders donated to the company 5,000 shares of common stock when shares had a market price of P54. One fourth of these shares were subsequently issued for P56. 8. 30,000 shares of preferred stock were subscribed for at P55, and 50,000 shares of common stock were subscribed for at 52. Both subscriptions were payable 30% upon subscription, the balance in one payment. 9. The second subscription payment was received, except one subscriber for 10,000 shares of common stock defaulted on payment. The full amount paid by this subscriber was returned, and all of the fully paid stock was issued. 10. Dividends were paid at the end of the calendar year on the common stock at P3 per share and on the preferred stock at the preferred rate. 11. Net income for the year was P3,500,000. Based on the above and the result of your audit, determine the following as of December 31, 2005:
Transcribed Image Text:The stockholders equity of Willpower Corporation showed the following data on December 31, 2004: 12% preferred stock, P30 par, 160,000 shares issued and outstanding P4,800,000 Common stock, P50 par, 160,000 shares issued and outstanding 8,000,000 Premium on preferred stock 1,000,000 Premium on common stock 3,000,000 Retained earnings 5,500,000 The 2005 transactions of the company affecting its stockholders' equity are summarized chronologically as follows: 1. Issued 20,000 shares of preferred stock at P40. 2. Issued 100,000 shares of common stock at P80. 3. Retired 4,000 shares of preferred stock at P45. 4. Purchased 12,000 shares of its common stock at P60. 5. Split common stock two for one. 6. Reissued 10,000 shares of treasury stock - common at P45. 7. Stockholders donated to the company 5,000 shares of common stock when shares had a market price of P54. One fourth of these shares were subsequently issued for P56. 8. 30,000 shares of preferred stock were subscribed for at P55, and 50,000 shares of common stock were subscribed for at 52. Both subscriptions were payable 30% upon subscription, the balance in one payment. 9. The second subscription payment was received, except one subscriber for 10,000 shares of common stock defaulted on payment. The full amount paid by this subscriber was returned, and all of the fully paid stock was issued. 10. Dividends were paid at the end of the calendar year on the common stock at P3 per share and on the preferred stock at the preferred rate. 11. Net income for the year was P3,500,000. Based on the above and the result of your audit, determine the following as of December 31, 2005:
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