Teller Corporation’s post-closing trial balance at December 31, 2017, was as follows.Check the below image for trial balance.At December 31, 2017, Teller had the following number of ordinary and preference shares. OrdinaryPreferenceAuthorized600,00060,000Issued200,00010,000Outstanding190,00010,000The dividends on preference shares are $4 cumulative. In addition, the preference shares have a preference in liquidation of $50 per share.InstructionsPrepare the equity section of Teller’s statement of financial position at December 31, 2017. TELLER CORPORATIONPOST-CLOSING TRIAL BALANCEDECEMBER 31, 2017Cr.$ 310,000Dr.Accounts payableAccounts receivable$ 480,000Accumulated depreciation-building and equipmentAllowance for doubtful accountsBonds payableBuilding and equipmentCash185,00030,000700,0001,450,000190,000Dividends payable on preference shares- cashInventories4,000560,000400,000LandPrepaid expensesRetained earningsShare capital - ordinary ($1 par value)Share capital - preference ($50 par value)Share premium-ordinaryShare premium-treasuryTreasury shares-ordinary at cost40,000201,000200,000500,0001,000,000160,000170,000Totals$3,290,000$3,290,000

The total stockholders’ equity represents the owner’s capital or claim in the company. The total…

Answered: TELLER CORPORATION POST-CLOSING TRIAL…

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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Teller Corporation’s post-closing trial balance at December 31, 2017, was as follows.

Check the below image for trial balance.

At December 31, 2017, Teller had the following number of ordinary and preference shares.

	Ordinary	Preference
Authorized	600,000	60,000
Issued	200,000	10,000
Outstanding	190,000	10,000

The dividends on preference shares are $4 cumulative. In addition, the preference shares have a preference in liquidation of $50 per share.

Instructions
Prepare the equity section of Teller’s statement of financial position at December 31, 2017.

TELLER CORPORATION
POST-CLOSING TRIAL BALANCE
DECEMBER 31, 2017
Cr.
$ 310,000
Dr.
Accounts payable
Accounts receivable
$ 480,000
Accumulated depreciation-building and equipment
Allowance for doubtful accounts
Bonds payable
Building and equipment
Cash
185,000
30,000
700,000
1,450,000
190,000
Dividends payable on preference shares- cash
Inventories
4,000
560,000
400,000
Land
Prepaid expenses
Retained earnings
Share capital - ordinary ($1 par value)
Share capital - preference ($50 par value)
Share premium-ordinary
Share premium-treasury
Treasury shares-ordinary at cost
40,000
201,000
200,000
500,000
1,000,000
160,000
170,000
Totals
$3,290,000
$3,290,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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