**Stockholders' Equity Section Overview**Prepare the Paid-In Capital portion of the stockholders' equity section of the balance sheet using **Method 1** of **Exhibit 8**. There are 375,000 shares of common stock authorized and 85,000 shares of preferred stock authorized. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.**Point Loma Group Inc.****Stockholders' Equity (Paid-In Capital Section)****October 31, 20XX**| | **Paid-in capital:** ||---|----------------------|| 1 | || 2 | || 3 | || 4 | || 5 | || 6 | || 7 | || 8 | || 9 | |Note: The table in the image seems to be a template for inputting details related to paid-in capital. It’s crucial to reference the Amount Descriptions list to ensure accurate and standardized entries. ### Educational Website Content#### Topic: Understanding Trial Balances**Instructions:**The following accounts and their balances were selected from the unadjusted trial balance of Point Loma Group Inc., a freight forwarder, at October 31, the end of the current fiscal year:| Account Description | Balance (USD) ||-----------------------------------------------------------|--------------------|| 1. Common Stock, no par, $13 stated value | $4,147,000.00 || 2. Paid-In Capital from Sale of Treasury Stock | $45,400.00 || 3. Paid-In Capital in Excess of Par-Preferred Stock | $192,000.00 || 4. Paid-In Capital in Excess of Stated Value-Common Stock | $481,000.00 || 5. Preferred 2% Stock, $120 par | $7,800,000.00 || 6. Retained Earnings | $40,795,000.00 |**Explanation of Entries:**1. **Common Stock, No Par, $13 Stated Value**: - This account reflects the total value of common stock issued by Point Loma Group Inc. The "no par" stock implies that the stock does not have a par value; however, it has a stated value of $13 per share.2. **Paid-In Capital from Sale of Treasury Stock**: - This account includes the additional capital generated from the sale of treasury stock over its cost. Treasury stock is previously issued stock that the company repurchased and then resold.3. **Paid-In Capital in Excess of Par-Preferred Stock**: - This entry captures the funds received from issuing preferred stock, over and above its par value. Par value is the nominal or face value assigned to the stock.4. **Paid-In Capital in Excess of Stated Value-Common Stock**: - This account contains the excess amount received from issuing common stock beyond its stated value. Stated value is similar to par value but applicable for no-par stocks.5. **Preferred 2% Stock, $120 Par**: - This represents the total value of preferred stock issued by the company, with a par value of $120 per share and a 2% dividend rate.6. **Retained Earnings**: - Retained earnings show the accumulated net income that the

Paid in capital section of stockholders equity does not include retained earnings

Answered: Stockholders' Equity Prepare the…

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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! Required Information [The following information applies to the questions displayed below.] The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders' Equity (January 1) Common stock-$5 par value, 100,000 shares authorized, 35,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity Stockholders' Equity (December 31) Common stock-$5 par value, 100,000 shares authorized, 41,200 shares issued, 4,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($40,000 restricted by treasury stock) Less cost of treasury stock Total stockholders' equity The following transactions and events affected its equity during the year. January 5 Declared a $0.40 per share cash dividend, date of record January 10. March 20 Purchased treasury stock for cash. April 5 July 5 July 31. Declared a $0.40 per share cash dividend,…
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Compute for stockholders’ equity using the following information:(please answer in good accounting form. thank you!)
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Required information [The following information applies to the questions displayed below.] The stockholders' equity section of Velcro World is presented here. VELCRO WORLD Balance Sheet (partial). ($ and shares in thousands) Stockholders' equity: Preferred stock, $1 par value Common stock, $1 par value Additional paid-in capital Total paid-in capital $ 4,300 13,000 293,600 310,900 271,000 (180,000) Retained earnings Treasury stock, 12,000 common shares Total stockholders' equity $ 401,900 Based on the stockholders' equity section of Velcro World, answer the following questions. Remember that all amounts are presented in thousands. 4. If retained earnings at the beginning of the period was $233 million and $13 million was paid in dividends during the year, what was the net income for the year? (Enter your answer in million (i.e., 5,000,000 should be entered as 5).) Net income million
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Topic: Stockholders’ Equity Section of the Balance Sheet The following summaries for 1Maryland Service, Inc., and 2Grapone, Co., provide the information needed to prepare the stockholders’ equity section of each company’s balance sheet. The two companies are independent. Maryland is authorized to issue 44,000 shares of $1 par common stock. All the stock was issued at $11 per share. The company incurred net losses of $47,000 in 2009 and $15,000 in 2010. It earned net income of $32,000 in 2011 and $178,000 in 2012. The company declared no dividends during the four-year period. 2. Grapone’s charter authorizes the issuance of 70,000 shares of 5%, $14 par preferred stock and 470,000 shares of no-par common stock. Grapone issued 1,400 shares of the preferred stock at $14 per share. It issued 130,000 shares of the common stock for $260,000. The company’s retained earnings balance at the beginning of 2012 was $60,000. Net income for 2012 was $98,000, and the company declared the specified…
Required information [The following information applies to the questions displayed below.] The stockholders' equity section of The Seventies Shop is presented here. THE SEVENTIES SHOP Balance Sheet (partial) ($ in thousands) Stockholders' equity: Preferred stock, $50 par value Common stock, $5 par value Additional paid-in capital Total paid-in capital Retained earnings Treasury stock Total stockholders' equity $0 13,000 28,600 Number of shares 41,600 46,000 (2,300) $85,300 Based on the stockholders' equity section of The Seventies Shop, answer the following questions. Remember that all amounts are presented in thousands. 5. If the treasury stock was purchased at $16 per share, how many shares were purchased? (Enter your answer in total number of shares, not in thousands.)
Entries for Issuing Par Stock On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 45,000 shares of $12 par common stock at $41, and on February 27, it issued for cash 130,000 shares of preferred stock, $5 par at $8. a. Journalize the entries for January 22 and February 27. If an amount box does not require an entry, leave it blank. Jan. 22 Cash Common Stock Paid-In Capital in Excess of Par-Common Stock Feb. 27 Cash Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock b. What is the total amount invested (total paid-in capital) by all stockholders as of February 27?$
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Project 1: Stockholders' Equity (10 points) Required: Answer the questions on the following page in Excel and upload your file to Moodle by the deadline specified by your Shown below is the stockholders' equity section of Holiday Travels' balance sheet at December 31, 2022: Common stock, $2 par value, 5,000,000 shares authorized, 370,000 shares issued and outstanding Additional paid-in capital Retained earnings Total stockholders' equity $740,000 1,595,000 2,680,000 $5,015,000 During 2023, the following events occurred: > Holiday Travels was authorized to sell 120,000 shares of $100 par, 6% preferred stock > Holiday sold 23,000 shares of the preferred stock at par value A cash dividend of $235,000 was declared and paid Holiday Travels declared and issued a 10% stock dividend on the common stock when the market value of the stock was $17 per share Net income for the year was $1,650,000

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