Question

Problem 15-3 Wildhorse Company has two classes of capital stock outstanding: 9%, $20 par preferred and $5 par common. On December 31, 2017, the following accounts were included in stockholders’ equity. Preferred Stock, 138,600 shares $ 2,772,000 Common Stock, 1,996,000 shares 9,980,000 Paid-in Capital in Excess of Par—Preferred Stock 190,000 Paid-in Capital in Excess of Par—Common Stock 26,670,000 Retained Earnings 4,527,000 The following transactions affected stockholders’ equity during 2018. Jan. 1 30,300 shares of preferred stock issued at $23 per share. Feb. 1 50,600 shares of common stock issued at $19 per share. June 1 2-for-1 stock split (par value reduced to $2.50). July 1 30,200 shares of common treasury stock purchased at $11 per share. Wildhorse uses the cost method. Sept. 15 9,100 shares of treasury stock reissued at $12 per share. Dec. 31 The preferred dividend is declared, and a common dividend of 52¢ per share is declared. Dec. 31 Net income is $2,111,000. Prepare the stockholders’ equity section for Wildhorse Company on December 31, 2018. (Enter account name only and do not provide descriptive information.) WILDHORSE COMPANY Stockholders’ Equity $ $ : $

Answer 1

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Preferred Stock					Padi in capital in excess of par - Preffered Stock
Debit		Credit			Debit		Credit
		Beginning	$      2,772,000				Beginning	$          190,000
		Jan 1. 30,300*$20	$          606,000				Jan 1. 30,300*$3	$            90,900
		Ending	$      3,378,000				Ending	$          280,900
Common Stock					Padi in capital in excess of par - Common Stock
Debit		Credit			Debit		Credit
		Beginning	$      9,980,000				Beginning	$    26,670,000
		Feb 1 50,600*$5	$          253,000				Feb 1 50,600*$14	$          708,400
		Ending	$    10,233,000				Ending	$    27,378,400
Treasury Stock					Paid in capital from treasury
Debit		Credit			Debit		Credit
Jul 1	$          332,200	Sep 15 9,100*$11	$          100,100				Sep 15 9,100*$1	$              9,100
Ending	$          232,100						Ending	$              9,100
Stockholder's Equity:
					Retained Earning
Capital Stock					Debit		Credit
Preferred Stock, $20 par, 9%, 168,900 shares			$      3,378,000		Dec 31 $3,378,000*9%	$            304,020	Beginning	$      4,527,000
Common Stock, $2.50 par, 4,093,200 shares issued,					Dec 31	$        2,117,492	Dec 31	$      2,111,000
4,072,100 shares outstanding			$    10,233,000				Ending	$      4,216,488
Total Capital Stock			$    13,611,000
Additional paid in capital:					No of Common Shares:
In excess of preferres stock		$                       280,900			Beginning		1,996,000
In excess of common stock		$                 27,378,400			Add: new issue		50,600
For treasury stock		$                            9,100	$    27,668,400				2,046,600
Total Paid in capital			$    41,279,400		Stock Split 2 for 1		4,093,200
Retained Earning			$      4,216,488		Less: Treasury Stock, net	30,200-9,100	(21,100)
Total Paid in capital and Retained Earning							4,072,100
Less: Treasury Stock (21,100 Common)			$       (232,100)		Dividend Rate		$                           0.52
Total Stockholder's Equity			$    45,263,788				$                2,117,492