Question

The following selected information is from Princeton Company's comparative balance sheets. At Docenber 31 2018 2017 Coanon stock,$10 par value Paid-in capital in excess of par Retained earnings ,000 120,000 587,000 352,000 333,500 30,500 The following selected information is from Princeton Company's comparative balance sheets. At Decenber Common stock, $10 par value Paid-in oapital in exoess of par Rotained oarninga 2017 127,000 120,000 587,000 352,000 The company's net income for the year ended December 31, 2018, was $58,000. 1. Complete the T-accounts to calculate the cash received from the sale of its common stock during 2018. 2. Complete the T-account to calculate the cash paid for dividends during 2018. The company's net income for the year ended December 31, 2018, was $58,000. 1. Complete the T-accounts to calculate the cash received from the sale of its common stock during 2018 2. Complete the T-account to calculate the cash peid for dividends during 2018. Complete this question by entering your a nswers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the T-accounts to calculate the cash reccived from the sale of its common stock during 2018 Required 1 Required 2 $10 Par bal Complete the T-account to calculate the cash paid for dividends during 2018. Beg. bal. End. bal Paid-in Copital in Excess of Par End. bal. Beg. bal. < Required 1 End. bal. Cash receved < Required Required 2

Answer 1

Solution 1:

Common Stock $10 Par
		Beg. Balance	$120,000.00
		Cash	$7,000.00
Ending balance	$127,000.00
Total	$127,000.00		$127,000.00

Paid in Capital in excess of par
		Beg. Balance	$352,000.00
		Cash	$235,000.00
Ending balance	$587,000.00
Total	$587,000.00		$587,000.00

cash received = $7,000 + $235,000 = $242,000

Solution 2:

Retained Earnings
Cash Paid (dividends)	$32,000.00	Beg. Balance	$307,500.00
		Net Income	$58,000.00
Ending balance	$333,500.00
Total	$365,500.00		$365,500.00

Cash Dividend paid = $32,000