E15-16 Contributed Capital Adams Company's records provide the following information on December 31, 2019:in, assuming it uses the cost method.10 15.8Account TitleAdditional Paid-in Capital on Preferred StockAmountCommon StockPremium on Bonds PayablePreferred StockBonds PayablePreferred Stock SubscribedRetained EarningsAdditional Paid-in Capital on Common Stock$ 17,00075,0004,00080,000100,00020,000121,00084,000SHOWME HOWAdditional information:1. Common stock has a $5 par value, 50,000 shares are authorized, 15,000 shares have been issued and areoutstanding.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, iscumulative, 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 appropriateparenthetical notes.

Contribution capital: Contribution capital is the total amount of cash or assets received by the…

Answered: E15-16 Contributed Capital Adams…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Comprehensive Isanti Inc. finances its capital needs approximately one-third from long-term debt and two-thirds from equity. At December 31, 2018, Isanti had the following liability and equity items: 11% debenture bonds payable, face amount $5,000,000 Premium on bonds payable 352,400 Common stock 8,000,000 Additional paid-in capital 2,295,000 Retained earnings 2,465,000 Treasury stock, at cost 325,000 Transactions during 2019 and other information relating to Isanti's liabilities and equity accounts were as follows: The debenture bonds were issued on December 31, 2016, for $5,378,000 to yield 10%. The bonds mature on December 31, 2028. Interest is payable annually on December 31. Isanti uses the interest method to amortize bond premium. Isanti's common stock shares are traded on the over-the-counter market. At December 31, 2018, Isanti had 2,000,000 authorized shares of $10 par common stock. On January 15, 2019, Isanti reissued 15,000 of its 25,000 shares of…
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A Company issued $5,00,000/- new capital divided into $.10/- shares at a premium of $4/- per share payable as On Application $1/- per share On Allotment $4/- per share & $.2/- premium On Final Payment $.5/- per share & $.2/- premium Overpayments on application were to be applied towards sum due on allotment. Where no allotment was made money was to be returned in full. The issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted only 1,000 shares and applicants for 2,000 were sent letters of regret. All money due on allotment and final call was duly received. Make the necessary entries in the company‟s book.
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