Contributed Capital A partial list of the accounts and ending account balances taken from the postclosing trial balance of the Jordan Corporation on December 31, 2007 is shown as follows:
|
Account Title |
Amount |
|
Retained earnings |
$410,000 |
|
Bonds payable |
220,000 |
|
Common stock subscribed |
60,000 |
|
Long term investments in stock |
210,000 |
|
Additional paid in capital on common stock |
460,000 |
|
Premium on bonds payable |
30,000 |
|
Common stock |
500,000 |
|
Preferred stock subscribed |
35,000 |
|
Additional paid in capital on preferred stock |
112,000 |
|
Preferred stock |
300,000 |
|
Additional paid in capital from treasury stock |
4,000 |
|
Unrealized increase in value of securities available for sale |
3,000 |
|
Common stock option warrants |
20,000 |
Additional information:
1. Common stock is no par, with a stated value of $10 per share, 90,000 shares are authorized, 50,000 shares are issued and outstanding, 6,000 shares have been subscribed at a price of $28 per share.
2. Preferred stock has a $50 par value, 8,000 shares are authorized, 6,000 shares are issued and outstanding, 700 shares have been subscribed at a price of $70 per share. Each share is cumulative, convertible into five shares of common stock, and pays a 7% annual dividend. Dividends are not in arrears.
3. Bonds payable mature on July 1, 2019. They carry a 12% annual interest rate, payable semiannually. The premium is being amortized using the straight line method.
Required
Prepare the contributed capital section of the December 31, 2007 balance sheet for the Jordan Corporation. Include appropriate parenthetical notes for the common and preferred stock.