a partial list of the accounts and ending account balances 245813

A partial list of the accounts and ending account balances taken from the post closing trial balance of the Jordan Corporation on December 31, 2007 is shown as follows:

Account Title Amount

Retained earnings …………………………………….. $410,000

Bonds payable ………………………………………….. 220,000

Common stock subscribed ……………………………….. 60,000

Long-term investments in stock ………………………… 210,000

Additional paid-in capital on common stock ……………. 460,000

Premium on bonds payable ……………………………….. 30,000

Common stock …………………………………………… 500,000

Preferred stock subscribed ………………………………… 35,000

Additional paid-in capital on preferred stock …………….. 112,000

Preferred stock ……………………………………………. 300,000

Additional paid-in capital from treasury stock ……………… 4,000

Unrealized increase in value of securities available for sale … 3,000

Common stock option warrants …………………………….. 20,000

Additional information:

1. Common stock is no-par, with a stated value of $10 per share, 90,000 shares are authorized, 50,000 shares are issued and outstanding, 6,000 shares have been subscribed at a price of $28 per share.

2. Preferred stock has a $50 par value, 8,000 shares are authorized, 6,000 shares are issued and outstanding, 700 shares have been subscribed at a price of $70 per share. Each share is cumulative, convertible into five shares of common stock, and pays a 7% annual dividend. Dividends are not in arrears.

3. Bonds payable mature on July 1, 2019. They carry a 12% annual interest rate, payable semiannually. The premium is being amortized using the straight-line method.

Required

Prepare the contributed capital section of the December 31, 2007 balance sheet for the Jordan Corporation. Include appropriate parenthetical notes for the common and preferred stock.

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