Question

FINANCIAL ACCOUNTING II Inge Co. had the following accounts (among others) in its general ledger at December 31, 2020: Bonds payable, 8%, due in 5 years Premium on bonds payable Additional paid-in capital, preferred stock Net gain on foreign currency translation Cash dividend payable, common stock Stock dividend distributable, common stock Sinking fund Additional paid-in capital, common stock Net actuarial loss on pension obligation Investment in U.S. Treasury notes Treasury stock, common stock, at cost of $100 Preferred stock, $10 par value, 6%, 100,000 shares authorized, ? shares issued, ? shares outstanding Reserve for sinking fund Retained earnings, unappropriated . Common stock, $ ? stated value, ? shares issued, 24,400 shares outstanding $ 80,000 8,000 17,600 41,000 9,000 10,000 37,000 32,400 11,000 24,000 60,000 per share 200,000 37,000 263,000 100,000 Using the applicable information from the above listing, prepare a statement of shareholders' equity for Inge Co., as of December 31, 2020.

Answer 1

INGE Co.

Statement of Stockholders’ equity

	Amount ($)	Amount ($)
Preferred stock (100,000 authorized issued and outstanding of 20,000 shares @ $10 par)		200,000
Common stock authorized- 60,000 shares outstanding 25000 shares issued 24,400 shares @ $4 par value	100,000
Common stock subsribed 1000 shares	4000	104000
		304,000
Additional paid in capital on
Preferred stock	17,600
Common stock	30,200	47800
Total paid in capital 47800+304000)		351,800
Retained earnings		263,000
		614800
Less: Treasury stock of 600 common stock at cost of $ 100 per stock		-60,000
Total stockholders' equity		554,800

Note that dividend transactions, actuarial loss and foreing transalation gains are all reflected in the retained earnings, hence, they are not treated