Question

Exercise 15-15 Marigold Corporation’s charter authorized 1 million shares of $11 par value common shares, and 400,000 shares of 8% cumulative and non-participating preferred shares, with a par value of $100 per share. The corporation made the following share transactions through December 31, 2020: 270,000 common shares were issued for $3.24 million and 9,000 preferred shares were issued for machinery valued at $1,287,000. Subscriptions for 10,000 common shares have been taken, and 40% of the subscription price of $15 per share has been collected. The shares will be issued upon collection of the subscription price in full. In addition, 10,000 common shares have been repurchased for $14 and retired. The Retained Earnings balance is $200,000 before considering the transactions above.

Your answer is partially correct. Try again. Prepare the shareholders’ equity section of the SFP in good form.

Answer 1

Shareholders' Equity	Amount	Calculation basis
Common Stock, par value $11 per share (260,000 shares issued of 1 Million authorized)	2,860,000.00	=270,000*11-10,000*11
8% cumulative and non-participating preferred shares, par value $100 per share (9,000 shares issued of 400,000 authorized)	900,000.00	9000*100
Capital in excess of par value of stock	657,000.00	1*270,000+43*9,000
10000 Share's 40% subscription money received pending allotment	60,000.00	10000*15*40%
Retained Earning	170,000.00	200,000-10000*3
Total	4,647,000.00