Question

Problem 11-03A (Part 2)

On December 31, 2021, Cullumber Company had 1,290,000 shares of $6 par common stock issued and outstanding. At December 31, 2021, stockholders’ equity had the amounts listed here.

Common Stock		$7,740,000
Additional Paid-in Capital		1,760,000
Retained Earnings		1,235,000

Transactions during 2022 and other information related to stockholders’ equity accounts were as follows.

1.		On January 10, issued at $106 per share 125,000 shares of $104 par value, 8% cumulative preferred stock.
2.		On February 8, reacquired 13,200 shares of its common stock for $12 per share.
3.		On May 9, declared the yearly cash dividend on preferred stock, payable June 10, to stockholders of record on May 31.
4.		On June 8, declared a cash dividend of $1.05 per share on the common stock outstanding, payable on July 10, to stockholders of record on July 1.
5.		Net income for 2022 was $3,651,000.

Prepare the stockholders’ equity section of Cullumbers' balance sheet at December 31, 2022.

CULLUMBER COMPANY Partial Balance Sheet choose the accounting period December 31, 2022For the Month Ended December 31, 2022For the Year Ended December 31, 2022
select an opening section name Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentAdditional Paid-in CapitalPaid-in CapitalCapital StockTotal Capital StockTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Stockholders’ EquityTotal Additional Paid-in Capital
select an opening subsection name Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentAdditional Paid-in CapitalPaid-in CapitalCapital StockTotal Capital StockTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Stockholders’ EquityTotal Additional Paid-in Capital
select a name of the subordinate part one of this subsection Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentAdditional Paid-in CapitalPaid-in CapitalCapital StockTotal Capital StockTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Stockholders’ EquityTotal Additional Paid-in Capital
enter a balance sheet item			$enter a dollar amount
enter a balance sheet item			enter a dollar amount
select a summarizing line for the subordinate part one of this subsection     Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Property, Plant and Equipment    Stockholders' Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Additional Paid-in Capital    Paid-in Capital    Capital Stock    Total Capital Stock    Total Paid-in Capital    Total Paid-in Capital and Retained Earnings    Total Stockholders’ Equity    Total Additional Paid-in Capital					$enter a subtotal of the two previous amounts
select a name of the subordinate part two of this subsection Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentAdditional Paid-in CapitalPaid-in CapitalCapital StockTotal Capital StockTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Stockholders’ EquityTotal Additional Paid-in Capital
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
select a summarizing line for the subordinate part two of this subsection     Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Property, Plant and Equipment    Stockholders' Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Additional Paid-in Capital    Paid-in Capital    Capital Stock    Total Capital Stock    Total Paid-in Capital    Total Paid-in Capital and Retained Earnings    Total Stockholders’ Equity    Total Additional Paid-in Capital					enter a subtotal of the two previous amounts
select a closing subsection name     Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Property, Plant and Equipment    Stockholders' Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Additional Paid-in Capital    Paid-in Capital    Capital Stock    Total Capital Stock    Total Paid-in Capital    Total Paid-in Capital and Retained Earnings    Total Stockholders’ Equity    Total Additional Paid-in Capital					enter a total amount for this subsection
enter a balance sheet item					enter a dollar amount
select a summarizing line for this part of the statement     Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Property, Plant and Equipment    Stockholders' Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Additional Paid-in Capital    Paid-in Capital    Capital Stock    Total Capital Stock    Total Paid-in Capital    Total Paid-in Capital and Retained Earnings    Total Stockholders’ Equity    Total Additional Paid-in Capital					enter a subtotal amount for this part of the statement
select between addition and deduction     Add    Less     : enter a balance sheet item					enter a dollar amount
select a closing section name     Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Property, Plant and Equipment    Stockholders' Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Additional Paid-in Capital    Paid-in Capital    Capital Stock    Total Capital Stock    Total Paid-in Capital    Total Paid-in Capital and Retained Earnings    Total Stockholders’ Equity    Total Additional Paid-in Capital					$enter a total amount for this section

Answer 1

Account Title Cash Preferred Stock Paid in Capital in Excess of Par Preferred Stock (To record issue of preferred stock) Treasury Stock Cash Date Debit Credit Jan 2 $1,32,50,000 [125000 x $106] $1,30,00,000 [125000 x $104] $2,50,000 [125000 x $2] Feb 8 $1,58,400 [13200 x $12] $1,58,400 [13200 x $12] (To record issue of preferred stock) May 9 $10,40,000 [13000000 x 8%] Dividend Dividend Payable (To record issue declaration of preference dividend) Dividend Dividend Payable (To record declaration of common stock dividend) Cash $10,40,000 [13000000 x 8%] June 8 $13,40,640 [(1290000-13200) x $1.05] $13,40,640 [4600 x $1] $10,40,000 June 10 Dividend Payable (To record payment of preference dividend) Cash Dividend Payable $10,40,000 July 10 $13,40,640 $13,40,640 (To record payment of common stock dividend) Dec 31 $36,51,000 Income Summary Retained Earniings $36,51,000 (To record transfer of net income to retained earnings) Dec 31 Retained Earniings $23,80,640 Dividend (To close dividend account) $23,80,640

Cullumber Company Partial Balance Sheet Dec 31, 2022 Particulars Amount Amount Stockholders' Equity 8% Cumulative Preferred Stock $1,30,00,000 $77,40,000 Common Stock Total Capital Stock Paid in Capital in Excess of Par Preferred Stock Paid in Capital in Excess of Par Common Stock Additional Paid in Capital Total Paid in Capital Retained Earnings [$1235000 $3651000 $2380640] Less: Treasury Stock Total Stockholders' Equity $2,07,40,000 $2,50,000 $17,60,000 $20,10,000 $2,27,50,000 $25,05,360 ($1,58,400) $2,50,96,960