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Prepare The Paid-In Capital Portion of The Stockholders' Equity Section of The Balance Sheet. There

The document provides account balances from the unadjusted trial balance of REO Inc., a freight forwarder, including: - $750,000 for preferred stock - $90,000 for paid-in capital in excess of par for preferred stock - $400,000 for common stock - $960,000 for paid-in capital in excess of stated value for common stock - $25,000 for paid-in capital from treasury stock sale - $3,150,000 for retained earnings It also provides the template for the paid-in capital section of the stockholders' equity section of the balance sheet to record these accounts at their given balances.

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71 views3 pages

Prepare The Paid-In Capital Portion of The Stockholders' Equity Section of The Balance Sheet. There

The document provides account balances from the unadjusted trial balance of REO Inc., a freight forwarder, including: - $750,000 for preferred stock - $90,000 for paid-in capital in excess of par for preferred stock - $400,000 for common stock - $960,000 for paid-in capital in excess of stated value for common stock - $25,000 for paid-in capital from treasury stock sale - $3,150,000 for retained earnings It also provides the template for the paid-in capital section of the stockholders' equity section of the balance sheet to record these accounts at their given balances.

Uploaded by

RENALDY
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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pAssignment 9

3. The following accounts and their balances were selected from the unadjusted trial balance of REO
Inc., a freight forwarder, at October 31, the end of the current fiscal year:

Preferred 2% Stock, $100 par . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 750,000

Paid-In Capital in Excess of Par—Preferred Stock . . . . . . . . . . . . . 90,000

Common Stock, no par, $5 stated value . . . . . . . . . . . . . . . . . . . 400,000

Paid-In Capital in Excess of Stated Value—Common Stock . . . . . . 960,000

Paid-In Capital from Sale of Treasury Stock . . . . . . . . . . . . . . . . . 25,000

Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,150,000

Prepare the Paid-In Capital portion of the Stockholders’ Equity section of the balance sheet. There
are 250,000 shares of common stock authorized and 20,000 shares of preferred stock authorized.

Stockholders' Equity

Paid-in Capital:
Preferred Stock - $100 Par Value, 2%,
20,000 shares authorized, 7,500 shares $
issued and outstanding 750.000
Paid-In Capital in Excess of Par - Preferred $ $
Stock 90.000 840.000
Common Stock - $5 Par Value, 250,000
shares authorized, 80,000 shares issued and $
outstanding 400.000
Paid-In Capital in Excess of Par - Common $ $
Stock 960.000 1.360.000
$
Retained Earnings 3.150.000
$
Total Stockholders' Equity 5.350.000
Cash Flow from Operating Activities:
Net income $ 88,425
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation expense $ 17,700
Deacrease in accounts receivable $ 3,825
Increase in merchandise inventory s $ (35,475)
Increase in accounts payable $ 2,850
Decrease in income taxes payable $ (2,250) $ (13,350)
Net cash flows provided by operating activities $ 75,075

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