E15-16 Contributed Capital Adams Company's records provide the following information on December 31, 2019: LO 15.8 Account Title Amount Additional Paid-in Capital on Preferred Stock Common Stock Premium on Bonds Payable Preferred Stock Bonds Payable Preferred Stock Subscribed Retained Earnings Additional Paid-in Capital on Common Stock $ 17,000 75,000 4,000 80,000 100,000 20,000 121,000 84,000 SHOW МЕ HOW Additional information: 1. Common stock has a $5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a $100 par value, 3,000 shares are authorized, 800 shares have been issued and are out- standing. Two hundred shares have been subscribed at $120 per share. The stock pays an 8% dividend, is cumulative, and is callable at $130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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E15-16 Contributed Capital Adams Company's records provide the following information on December 31, 2019:
LO 15.8
Account Title
Amount
Additional Paid-in Capital on Preferred Stock
Common Stock
Premium on Bonds Payable
Preferred Stock
Bonds Payable
Preferred Stock Subscribed
$ 17,000
75,000
4,000
80,000
100,000
20,000
121,000
84,000
SHOW
ME HOW
Retained Earnings
Additional Paid-in Capital on Common Stock
Additional information:
1. Common stock has a $5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are
outstanding.
2. Preferred stock has a $100 par value, 3,000 shares are authorized, 800 shares have been issued and are out-
standing. Two hundred shares have been subscribed at $120 per share. The stock pays an 8% dividend, is
cumulative, and is callable at $130 per share.
3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually.
Required:
Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate
parenthetical notes.
Transcribed Image Text:E15-16 Contributed Capital Adams Company's records provide the following information on December 31, 2019: LO 15.8 Account Title Amount Additional Paid-in Capital on Preferred Stock Common Stock Premium on Bonds Payable Preferred Stock Bonds Payable Preferred Stock Subscribed $ 17,000 75,000 4,000 80,000 100,000 20,000 121,000 84,000 SHOW ME HOW Retained Earnings Additional Paid-in Capital on Common Stock Additional information: 1. Common stock has a $5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a $100 par value, 3,000 shares are authorized, 800 shares have been issued and are out- standing. Two hundred shares have been subscribed at $120 per share. The stock pays an 8% dividend, is cumulative, and is callable at $130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
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