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Peeler Company was incorporated as a new business on January 1 par common stock. On January 10, Peeler issued for cash 480 sha time when the stock was selling for $68 per share.

Peeler Company was incorporated as a new business on January 1 par common stock. On January 10, Peeler issued for cash 480 sha time when the stock was selling for $68 per share.

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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Peeler Company was incorporated as a new business on January 1, 2017. The corporate charter approved on that date authorized the issuance of 1,100 shares of $100 par, 7% cumulative, nonparticipating preferred stock and 12,000 shares of $5 par common stock. On January 10, Peeler issued for cash 480 shares of preferred stock at $125 per share and 4,300 shares of common stock at $80 per share. On January 20, it issued 1,100 shares of common stock to acquire a building site at a time when the stock was selling for $68 per share. During 2017, Peeler established an employee benefit plan and acquired 540 shares of common stock at $60 per share as treasury stock for that purpose. Later in 2017, it resold 120 shares of the stock at $68 per share. On December 31, 2017, Peeler determined its net income for the year to be $41,400. The firm declared the annual cash dividend to preferred stockholders and a cash dividend of $5 per share to the common stockholders. The dividends will be paid in 2018. Required: 1. Develop the Stockholders' Equity category of Peeler's balance sheet as of December 31, 2017. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Peeler Company Partial Balance Sheet December 31, 2017 Stockholders' equity Preferred stock Common stock Additional paid-in capital-preferred stock Additional paid-in capital-common stock Additional paid-in capital-treasury stock Total contributed capital Retained earnings Treasury stock Total stockholders' equity 4,000 27,500 8,600 Number of shares authorized Number of shares issued Number of shares outstanding 404,500 960 $484,560 20,230 23,780 481,010 2. Indicate on the statement the number of shares authorized, issued, and outstanding for both preferred and common stock. Preferred Stock Common Stock 1,100 ✔ 12,000 ✓ 430 X 5,500 X 430 X 5,090 X
Transcribed Image Text:Peeler Company was incorporated as a new business on January 1, 2017. The corporate charter approved on that date authorized the issuance of 1,100 shares of $100 par, 7% cumulative, nonparticipating preferred stock and 12,000 shares of $5 par common stock. On January 10, Peeler issued for cash 480 shares of preferred stock at $125 per share and 4,300 shares of common stock at $80 per share. On January 20, it issued 1,100 shares of common stock to acquire a building site at a time when the stock was selling for $68 per share. During 2017, Peeler established an employee benefit plan and acquired 540 shares of common stock at $60 per share as treasury stock for that purpose. Later in 2017, it resold 120 shares of the stock at $68 per share. On December 31, 2017, Peeler determined its net income for the year to be $41,400. The firm declared the annual cash dividend to preferred stockholders and a cash dividend of $5 per share to the common stockholders. The dividends will be paid in 2018. Required: 1. Develop the Stockholders' Equity category of Peeler's balance sheet as of December 31, 2017. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Peeler Company Partial Balance Sheet December 31, 2017 Stockholders' equity Preferred stock Common stock Additional paid-in capital-preferred stock Additional paid-in capital-common stock Additional paid-in capital-treasury stock Total contributed capital Retained earnings Treasury stock Total stockholders' equity 4,000 27,500 8,600 Number of shares authorized Number of shares issued Number of shares outstanding 404,500 960 $484,560 20,230 23,780 481,010 2. Indicate on the statement the number of shares authorized, issued, and outstanding for both preferred and common stock. Preferred Stock Common Stock 1,100 ✔ 12,000 ✓ 430 X 5,500 X 430 X 5,090 X
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