Question

The following information is from Princeton Company's comparative balance sheets. Current At December 31 Prior Year Canon stock, $10 par value Paid-in capital in excess of par Retained earnings Year $ 148,800 599.88€ 345,500 $ 132,899 358,000 319.5ee The company's net Income for the current year ended December 31 was $64.000. 1. Complete the T-accounts to calculate the cash received from the sale of its common stock during the current year. Common Stock, $10 Par Beg bal. Issuance of common stock 132.000 8.000 End. bal. 140.000 Paid-in Capital in Excess of Par Beg bal. Issuance of common stock 358,000 241.000 End. bal. 599.000 Cash received 2 Complete the T-account to calculate the cash paid for dividends during the current year.. Retained Earnings Beg. bal. Current year net income 1 Current year dividends 319.500 0.000 2 34.000 End. bal. 311,500

Answer 1

Here you go, please find below inclined image:

i Cash received from sale of its common stock during the current year Common Stock, $10 Par Beg Bal Issuance of Common Stock (A) 1,32,000 8,000 (End Balance - Beg Balance) End Balance 1,40,000 3,58,000 Paid-in Capital in Excess of Par Beg Bal Issuance of Common Stock- Excess Value over Par (B) 2,41,000 (End Balance - Beg Balance) End Balance 5,99,000 Cash received (A+B) =8000+241000 $249000 2 Cash Paid for Dividends during the current Year Retained Earnings Beg Bal Current Year Net Income Cash Paid - Dividend End Balance 3,19,500 64,000 -38,000 3,45,500 So, Cash Paid for dividends would be $38,000