Question

The stockholders’ equity accounts of Flint Corporation on January 1, 2020, were as follows.

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Problem 13-03A a-c (Video) The stockholders' equity accounts of Flint Corporation on January 1, 2020, were as follows. Preferred Stock (8%, $52 par, 10,000 shares authorized) Common Stock ($1 stated value, 2,050,000 shares authorized) Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (10,000 common shares) $ 390,000 1,100,000 135,000 1,400,000 1,750,000 50,000 During 2020, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 24,500 shares of common stock for $125,000. Apr. 14 Sold 5,900 shares of treasury stock-common for $32,300. Sept. 3 Issued 4,900 shares of common stock for a patent valued at $34,300. Nov. 10 Purchased 1,100 shares of common stock for the treasury at a cost of $5,900. Dec. 31 Determined that net income for the year was $500,000. No dividends were declared during the year.

Answer 1

Credit Calculation Flint Corporation Date Account 1-Feb Cash Common Stock Paid in Capital in Excess of Stated Value-Common Stock Debit 125,000 =24,500*1 24,500 100,500 32,300 14-Apr Cash Treasury Stock Paid in Capital from Treasury Stock =5,900*(50,000/10,000) 29,500 2,800 34,300 3-Sep Patent Common Stock Paid in Capital in Excess of Stated Value-Common Stock -4,900*1 4,900 29,400 5,900 10-Nov Treasury Stock Cash 5,900 500,000 31-Dec Income Summary Retained Earnings 500,000

Flint Corporation T Accounts Date Explanation Ref Debit Preferred Stock 1-Jan Balance Credit Balance $390,000 Paid in Capital in Excess of Par-Preferred Stock 1-Jan Balance $ 135,000 Date Explanation Ref Debit Credit Balance Common Stock 1-Jan Balance $1,100,000 1-Feb J5 $ 24,500 $1,124,500 3-Sep $ 4,900 $1,129,400 Paid in Capital in Excess of Stated Value-Com Stock 1-Jan Balance $1,400,000 1-Feb J5 $ 100,500 $1,500,500 3-Sep $ 29,400 $1,529,900 Retained Earnings 1-Jan Balance $1,750,000 31-Dec $ 500,000 $2,250,000 Paid in Capital from Treasury Stock $ 2,800 14-Apr $ 2,800 Treasury Stock 1-Jan Balance 1-Feb 3-Sep $ 29,500 $ 50,000 $ 20,500 $ 26,400 J5 $ 5,900

Flint Corporation Balance Sheet - Partial At December 31, 2020 Stockholders Equity Paid in capital Capital Stock Preferred Stock Common Stock Total Capital Stock 390,000 1,129,400 1,519,400 135,000 1,529,900 2,800 Additional Paid in capital Paid in Capital in Excess of Par-Preferred Stock Paid in Capital in Excess of Stated Value-Common Stock Paid in Capital from Treasury Stock Total Additional Paid in Capital Total Paid in Capital Retained Earnings Total Paid in Capital & Retained Earnings Less: Treasury Stock Total Stockholders Equity 1,667,700 3,187,100 2,250,000 5,437,100 26,400 5,410,700