EX 13-14 Reporting paid-in capital

The following accounts and their balances were selected from the unadjusted trial balance of CW Group Inc., a freight forwarder, at March 31, the end of the current fiscal year:


Preferred 1% Stock, $75 par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,500,000
Paid-In Capital in Excess of Par—Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . 180,000
Common Stock, no par, $8 stated value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400,000
Paid-In Capital in Excess of Stated Value—Common Stock . . . . . . . . . . . . . . . 450,000
Paid-In Capital from Sale of Treasury Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190,000
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,570,000


Prepare the Paid-In Capital portion of the Stockholders’ Equity section of the balance sheet. There are 500,000 shares of common stock authorized and 100,000 shares of preferred stock authorized.


Answer:

Stockholders’ Equity
Paid-in capital:
 Preferred 1% stock, $75 par
(100,000 shares authorized,
60,000 shares issued) ............... $4,500,000
 Excess of issue price over par ...... 180,000 $4,680,000
 Common stock, no par, $8 stated
value (500,000 shares authorized,
300,000 shares issued)..... $2,400,000
 Excess of issue price over par ...... 450,000 2,850,000
 From sale of treasury stock ........... 190,000
 Total paid-in capital................... $7,720,000 

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