Question

The stockholders’ equity accounts of Castle Corporation on January 1, 2017, were as follows. Preferred Stock (8%, $48 par, cumulative, 10,000 shares authorized) $ 360,000 Common Stock ($1 stated value, 2,000,000 shares authorized) 1,050,000 Paid-in Capital in Excess of Par—Preferred Stock 150,000 Paid-in Capital in Excess of Stated Value—Common Stock 1,500,000 Retained Earnings 1,800,000 Treasury Stock (10,500 common shares) 52,500 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 24,500 shares of common stock for $121,000. Apr. 14 Sold 5,600 shares of treasury stock—common for $33,100. Sept. 3 Issued 5,200 shares of common stock for a patent valued at $34,500. Nov. 10 Purchased 1,100 shares of common stock for the treasury at a cost of $5,800. Dec. 31 Determined that net income for the year was $485,000. No dividends were declared during the year. Prepare a stockholders’ equity section at December 31, 2017, including the disclosure of the preferred dividends in arrears. (Enter the account name only and do not provide the descriptive information provided in the question.) CASTLE CORPORATION Balance Sheet (Partial) $ $ : $

Answer 1

BALANCE SHEET (PARTIAL)
Preferred Stock (8%, $48 par, cumulative, 10,000 shares authorized), 7500 shares issued & outstanding		360000
Common Stock ($1 stated value, 2,000,000 shares authorized), 1079700 shares issued		1079700
Paid in capital in excess of par-Preferred stock	150000
Paid in capital in excess of stated value-Common stock
[1500000+121000-24500+29300)	1625800
Paid in capital from sale of treasury stock	5100	1780900
Total paid in capital		3220600
Retained earnings [1800000+485000]		2285000
Total paid in capital and retained earnings		5505600
Less: Treasury stock [52500-5600*5+5800]		32300
Total stockholders' equity		5473300
Note to Financial Statements:
Preferred dividends of $28,800 are in arrears