Question

Inge Co. had the following accounts (among others) in its general ledger at December 31, 2020:

Bonds payable, 8%, due in 5 years ………………………………… $ 80,000

Premium on bonds payable …………………………………………. 8,000

Additional paid-in capital, preferred stock …………………………. 17,600

Net gain on foreign currency translation …………………………… 41,000

Cash dividend payable, common stock ……………………………. 9,000

Stock dividend distributable, common stock ………………………. 10,000

Sinking fund …………………………………………………………… 37,000

Additional paid-in capital, common stock ………………………….. 32,400

Net actuarial loss on pension obligation …………………………… 11,000

Investment in U.S. Treasury notes …………………………………. 24,000

Treasury stock, common stock, at cost of $100 per share ………. 60,000

Preferred stock, $10 par value, 6%, 100,000 shares authorized, ? shares issued, ? shares outstanding ………….. 200,000

Reserve for sinking fund …………………………………………….. 37,000

Retained earnings, unappropriated ………………………………… 263,000

Common stock, $ ? stated value, ? shares issued, 24,400 shares outstanding …................................................... 100,000

Using the applicable information from the above listing, prepare a statement of shareholders’ equity for Inge Co., as of December 31, 2020.

Answer 1

Statement of shareholders equity

Particulars	$	$
Stockholders equity
Preferred stock (100,000 authorised, issued and outstanding of 20,000 shares) @10 par value		200,000
Common stock authorised 60,000 shares outstanding 24,400 shares @4 par value		100,000
		300,000
Additional paid in capital on
Preferred stock	17600
Common stock	32400	50,000
Total paid in capital		350,000
Retained earnings		263000
		613,000
less treasury stock		(60,000)
Total stockholders equity		553,000