Question

The program continues to tell me my answers are wrong but I am not sure why. See the question and my answers below:

liabilities and stockholders' equity of The following table presents the long-term Information Control Corp. one year ago: $ 65,600,000 Long-term debt Preferred stock Common stock ($1 par value) Accumulated retained earnings el 4,060,000 15,600,000 135,600,000 Capital surplus 45,600,000 During the past year, Information Control issued 10.6 million shares of new stock at a total price of $59.2 million, and issued $35.6 million in new long-term debt. The company generated $10.2 million in net income and paid $2.6 million in dividends. Prepare the current balance sheet reflecting the changes that occurred at Information Control Corp. during the year. (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, i.e. 1,234,567.) Control Corp. Current Balance Sheet Long-term debt $ 101200000 $ 101200000 Total long-term debt Shareholders equity Preferred stock * Common stock ® Capital surplus Accumulated retained earnings * $ 4060000 26200000 94200000 7600000 Total equity $ 132060000] Total Liabilities & Equity $ 233260000

Answer 1

Here, some rectification in your answer based on the concept of issue of new shares and debt .

• The long-term debt account will increase by $35.6 million,
• common stock account should be increase by $10.6 million as 10.6 million shares with $1 par value
• additional capital surplus =59.2-10.6 = $48.6 million
• Addition to retained earnings =Net income- dividend = $10.2 -2.6= $7.6 million

Long-term debt $ 101,200,000
Total long-term debt $ 101,200,000
Shareholders equity
Preferred stock $ 4,060,000
Common stock ($1 par value) $ 26,200,000
Capital surplus $ 94,200,000
Accumulated retained earnings $ 143,200,000
Total equity $ 267,660,000
Total Liabilities & Equity $ 368,860,000