Prepare the stockholders' equity section of the Fremantle Corporation's balance sheet.8 Percent preferred stock, $100 par value, 20,000 shares authorized; 5,000 shares issued and outstanding$500,000Common stock, $1 par value, 100,000 shares authorized; 40,000 shares issued and outstanding40,000Paid-in capital in excess of par value—Preferred stock200,000Paid-in capital in excess of par value—Common stock800,000Retained earnings625,000Total Stockholders’ Equity$2,165,000 The following transactions, among others, occurred during the year:Jan.1Announced a 2-for-1 common stock split, reducing the par value of the common stock to $0.50 per share.Mar.31Converted $75,000 face value of convertible bonds payable (the book value of the bonds was $83,000) to common stock. Each $1,000 bond converted to 110 shares of common stock.June1Acquired equipment with a fair market value of $45,000 in exchange for 300 shares of preferred stock.Sept.1Acquired 15,000 shares of common stock for cash at $20 per share.Nov.21Issued 5,000 shares of common stock at $22 cash per share.Dec.28Sold 1,000 treasury shares at $23 per share. 31Closed net income of $125,000, to the Retained Earnings account. Do not use negative signs with your answers.Stockholders' Equity Paid in Capital Preferred StockAnswer AnswerAnswerAnswer Additional Paid-in-Capital Paid-in-Capital in Excess of Par value - Preferred StockAnswer Paid-in-Capital in Excess of Par value - Common StockAnswer AnswerAnswerAnswer Total Paid-in-Capital Answer Answer Answer Answer Answer Answer Answer Answer

The stockholders equity section consist the detail of the shares, excess over par value and retained…

Answered: Prepare the stockholders' equity…

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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Prepare the stockholders' equity section of the Fremantle Corporation's balance sheet.

8 Percent preferred stock, $100 par value, 20,000 shares
authorized; 5,000 shares issued and outstanding	$500,000
Common stock, $1 par value, 100,000 shares
authorized; 40,000 shares issued and outstanding	40,000
Paid-in capital in excess of par value—Preferred stock	200,000
Paid-in capital in excess of par value—Common stock	800,000
Retained earnings	625,000
Total Stockholders’ Equity	$2,165,000

The following transactions, among others, occurred during the year:

Jan.	1	Announced a 2-for-1 common stock split, reducing the par value of the common stock to $0.50 per share.
Mar.	31	Converted $75,000 face value of convertible bonds payable (the book value of the bonds was $83,000) to common stock. Each $1,000 bond converted to 110 shares of common stock.
June	1	Acquired equipment with a fair market value of $45,000 in exchange for 300 shares of preferred stock.
Sept.	1	Acquired 15,000 shares of common stock for cash at $20 per share.
Nov.	21	Issued 5,000 shares of common stock at $22 cash per share.
Dec.	28	Sold 1,000 treasury shares at $23 per share.
	31	Closed net income of $125,000, to the Retained Earnings account.

Do not use negative signs with your answers.


Paid in Capital
Preferred Stock	Answer
Answer	Answer	Answer
Additional Paid-in-Capital
Paid-in-Capital in Excess of Par value - Preferred Stock	Answer
Paid-in-Capital in Excess of Par value - Common Stock	Answer
Answer	Answer	Answer
Total Paid-in-Capital		Answer
Answer		Answer
		Answer
Answer		Answer
Answer		Answer

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