Contributed Capital The following is a list of selected accounts and ending account balances taken from the books of the Adams Company on December 31, 2007:
|
Account Title |
Amount |
|
Premium on preferred stock |
$17,000 |
|
Common stock |
75,000 |
|
Premium on bonds payable |
4,000 |
|
Preferred stock |
80,000 |
|
Bonds payable |
100,000 |
|
Preferred stock subscribed |
20,000 |
|
Retained earnings |
121,000 |
|
Premium on common stock |
84,000 |
Additional information:
1. Common stock has a $5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding.
2. Preferred stock has a $100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at $120 per share. The stock pays an 8% dividend, is cumulative and callable at $130 per share.
3. Bonds payable mature on January 1, 2011. They carry a 12% annual interest rate, payable semiannually.
Required
Prepare the contributed capital section of the December 31, 2007 balance sheet for the Adams Company. Include appropriate parenthetical notes.