Contributed Capital The following is a partial list of the accounts and ending account balances taken from the post closing trial balance of the Clett Corporation on December 31, 2007:
|
Common stock subscribed |
$10,000 |
Long term investments in preferred stock |
$90,000 |
|
Premium on bonds payable |
50,000 |
Preferred stock subscribed |
100,000 |
|
Preferred stock |
400,000 |
Retained earnings |
610,000 |
|
Temporary investments in common stock |
110,000 |
Premium on common stock |
542,000 |
|
Bonds payable |
500,000 |
Unrealized decrease in value of securities available for sale |
6,000 |
|
Common stock |
150,000 |
||
|
Premium on preferred stock |
76,000 |
Additional information:
1. Bonds payable mature on December 31, 2022. They carry a 12% interest rate, payable semiannually. The premium is being amortized using the straight line method.
2. The 7.5% preferred stock is cumulative and convertible into three shares of common stock. It has a par value of $100 per share, 20,000 shares are authorized, 4,000 shares are issued and outstanding, 1,000 shares have been subscribed at $125 per share.
3. Common stock has a par value of $5 per share, 100,000 shares are authorized, 30,000 shares are issued and outstanding, 2,000 shares have been subscribed at $41 per share.
Required
Prepare the contributed capital section of the December 31, 2007 balance sheet for the Clett Corporation. Include appropriate parenthetical notes for the common and preferred stock.