Question

The following selected Information is from Princeton Company's comparative balance sheets. At December 31 Common stock, $10 par value Paid-in capital in excess of par Retained earnings $ 188,800 $ 102,000 569,000 343, eee 315, 5ee 289,5ee The company's net income for the year ended December 31, 2017, was $49,000. 1. Complete the T-accounts to calculate the cash received from the sale of its common stock during 201 Common Stock, S10 Par Beg bal End, bai Paid-in Capital in Excess of Par Endba Cash received

Answer 1

Common astock, 1o Par Flo2,000 6,o00 begi Bal Issuance of common ptock End Bal f lo8,000 Paid-in Capital un Excess of Par Beg Isuance f common stock $343,600 Bal 6,000 End. Bal $569,000 Caleulate the cath veceiwed rom the Sale o its Lommon btock during 201 232,000 Caih reeeived

Calculation: Common astock JMuance of common tock (Ending Balance of common ptockBeginning Balance f common tock $ 102,000 - f l08,000 6,000 Paiain Capital n Excess o Par: TMuance o common stock (Ending Balance f Paid in Paid-in Capirtn- Beginning Balance capita) .343,000 569,000 d26,000 cam neceivedl common atock (Common 3nsuance stouk) + 9suance of common astocte lPaid in capital) f 6,000 t 226,000 32,000 Retainedl Earnings Bea. Bat. 2 01 Diviolend 23000 2o1Net Income 49,000 289, 500 End. Bal 31S So0

(ఎయయo 2017 Siwidends (Beginning Balance of Retained Earnings t Ending balance 2017 Net 3ncome Retained Earnings) f289,500 + 49,000-31S, So0 1 $23,000 furnitune 198, So0 Beg. Bal ars ets sale 56,000 End Bet 142,S00 Accumulated Depreciation Beg. Bat $43,500 2017depreciation $1,So0 $114,200 esale of asets End. Bal 92,200 Cost 56,000 43,500 F 12,S00 Accumuloted dlepreciation Book vaue

Calculatiou Aceumulated Depreciation: Beginning Baknce ot Aceumulated depreciation td017 Depreciation Ending Balance of Sale o aseta Accutmulated depreciation) 92,200 $114,200 t $ 21, So0 f43,S00 Accumulated Deparciation -(Beginning Balance acumulated depreciation Enoing Balance o accumulated dlepreciation + Depreciation 2017) 114, 200 $ 92,200 t 1, So o) $ 43,500 Book value Cont - Acuumulated depreciation $56,000-$ 43500 12,500