Question

HARTER The following accounts and their balances were selected from the adjusted trial balance of Point Loma Group Inc, a freight Forwarder, at October 31, the end of the current fiscal year Common stock, no par, 14 stated value $420,000 Paid-In Capital from Sale of Treasury Stock 281,000 Paid-in Capital in Excess of Par-Preferred Stock 97,920 Paid-In Capital in Excess of stated Value-Common Stock 1,000,000 Preferred 2 Stock $120 par 816,000 Retained Earnings 3,462.000 Prepare the Paid In Capital portion of the stockholders' Equity section of the balance sheet using Method 1 of Exhibit B. There are 100,000 shares of common stock authorized and 18,000 shares of preferred stock authorized Point Loma Group Inc., Stockholders' Equity October 31, 20xx Paldin Capital Total Paid in Capital Previous Next

Answer 1

The Paid-in Capital portion of the Stockholders' Equity section is shown as follows:-

Point Loma Group Inc.,

Stockholders' Equity

October 31, 20XX (Amounts in $)

Paid-in Capital:
Preferred 2% stock, $120 par; 18,000 shares authorized, 6,800 issued	816,000
Excess over par- Preferred Stock	97,920
Paid-in Capital, preferred stock (A)		913,920
Common Stock, no par, $14 stated value, 100,000 shares authorized, 30,000 issued	420,000
Excess over par-Common Stock	1,008,000
Paid-in Capital, common stock (B)		1,428,000
Sale of Treasury Stock (C)		281,000
Total Paid-In Capital (A+B+C)		2,622,920

Therefore total paid in capital is $2,622,920.

Working Notes:-

1) Issued Preferred Stock = $816,000/$120 par = 6,800 shares

2) Issued Common Stock = $420,000/$14 stated value = 30,000 shares