the following is a partial list of the accounts and 246397

The following is a partial list of the accounts and ending account balances taken from the post-closing trial balance of the Clett Corporation on December 31, 2007:

Common stock subscribed $ 10,000

Long-term investments in preferred stock $ 90,000

Premium on bonds payable 50,000

Preferred stock 400,000

Preferred stock subscribed 100,000

Temporary investments in common stock 110,000

Retained earnings 610,000

Bonds payable 500,000

Premium on common stock 542,000

Common stock 150,000

Premium on preferred stock 76,000

Unrealized decrease in value of securities available for sale 6,000

Additional information:

1. Bonds payable mature on December 31, 2022. They carry a 12% interest rate, payable semiannually. The premium is being amortized using the straight-line method.

2. The 7.5% preferred stock is cumulative and convertible into three shares of common stock. It has a par value of $100 per share, 20,000 shares are authorized, 4,000 shares are issued and outstanding, 1,000 shares have been subscribed at $125 per share.

3. Common stock has a par value of $5 per share, 100,000 shares are authorized, 30,000 shares are issued and outstanding, 2,000 shares have been subscribed at $41 per share.

Required

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

Related Articles

armstrong helmet company 239138

Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...

read more
GET A FREE QUOTE





  
Open chat
Need help? We are Online 24/7
Hello 👋
Can we help you?