Total stockholders' equity 12/31/14 1,288,000 Common stock PV $2, authorized 400,000; issued 180,000 at an average...

Total stockholders' equity 12/31/14 1,288,000 Common stock PV $2, authorized 400,000; issued 180,000 at an average issue price of 4.75 Balance is retained earnings. During 2015 Company issued 5,000 shares for 40,000 Company has net income of 77.000 and declared dividends of 40,000 Prepare the stockholders' equity section of the balance sheet as it would be presented in a classified balance sheet.

PP&E	12/31/14

Buildings, net		180,000
Land held for speculation		100,000
Land		120,000
Equipment, net		210,000

Accumulated depreciation buildings - 40,000
Accumulated depreciation equipment - 140,000


Duiring 2015:
Equipment (cost 40,000 and accumulated depreciation $22,000) was sold for $17,000
Buildings purchased for $40,000
Building (cost 50,000 and accumulated depreciation of 10,000) was sold for 70,000
Equipment was purchased for 32,000
Depreciation expense for 2015 was 50,000 ($6,000 buildings, 44,000 equipment)

Prepare the Property, Plant and Equipment section of the balance sheet as it would be seen in a classified balance sheet.

Expert Solution


As on 12/31/14
Common Stock :
400000authorized, 180000 common shares issued par value $2	$360,000	(180000*$2)
Paid in Capital in excess of par value-common stock	$495,000	(180000*$(4.75-2)
Retained Earning	$433,000	(1288000-360000-495000)
Total stockholders equity	$1,288,000

ISSUED IN 2015
5000 common shares par value $2	$10,000	(5000*2)
Paid in Capital in excess of par value-common stock	$30,000	(40000-10000)

RETAINED EARNINGS IN 2015
Retained Earnings 2014	$433,000
Add: Net Income in 2015	$77,000
Less: dividend	($40,000)
RETAINED EARNINGS IN 2015	$470,000

STOCKHOLDERS EQUITY SECTION OF BALANCE SHEET 2015
400000authorized, 185000 common shares issued par value $2	$370,000	(360000+10000)
Paid in Capital in excess of par value-common stock	$525,000	(495000+30000)
Retained Earning	$470,000
Total stockholders equity	$1,365,000

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