PROBLEM 19A-3 (CONTINUED)
(2)
LONG VIEW CORPORATION
STOCKHOLDERS’ EQUITY
Paid-in Capital:
Common Stock, $26 par value, authorized
52,000 shares, 13,600 shares issued
and outstanding
$353
6
0
0
00
Common Stock Dividend Distributable
31
8
2
4
00
$385
4
4
00
Additional Paid-in Capital:
Paid-in Capital in Excess of Par Value —
Common
$66
0
0
0
00
Paid-in Capital in Excess of Par Value —
Stock Dividend
$15
9
1
2
00
Paid-in Capital from Treasury Stock
1
6
8
0
00
Total Additional Paid-in Capital
83
5
2
00
Total Paid-in Capital
469
0
6
00
Retained Earnings
166
2
0
00
Total Stockholders’ Equity
$635
2
5
6
00
PROBLEM 19A-3 (CONCLUDED)
(3)
LONG VIEW CORPORATION
STATEMENT OF RETAINED EARNINGS
PROBLEM 19A-4
(1)
PINKERTON CORPORATION
GENERAL JOURNAL
PAGE 12
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Oct.
3
Retained Earnings
6
1
2
0
00
Dividends Payable
6
1
2
0
00
Nov.
15
Dividends Payable
6
1
2
0
00
Cash
6
1
2
0
00
18
Treasury Stock
7
5
6
0
00
Cash
7
5
6
0
00
25
Cash
2
6
4
0
00
Treasury Stock
2
1
6
0
00
Paid-in Capital from Treasury Stock
4
8
0
00
26
Retained Earnings
51
4
8
0
00
Common Stock Dividend Distributable
3
5
1
0
00
Paid-in Capital in Excess of Par
Value-Stock Dividend
47
9
7
0
00
Dec.
29
Common Stock Dividend Distributable
3
5
1
0
00
Common Stock
3
5
1
0
00
30
Cash
1
8
0
0
00
Paid-in Capital from Treasury Stock
3
6
0
00
Treasury Stock
2
1
6
0
00
Dec.
31
Income Summary
82
0
0
0
00
Retained Earnings
82
0
0
0
00
PROBLEM 19A-4 (CONCLUDED)
(2)
PINKERTON CORPORATION
STOCKHOLDERS’ EQUITY
Paid-in Capital:
Preferred 13.33% Stock, $9 par value,
authorized 6,000 shares, 3,100 shares
issued and outstanding
$27
9
0
0
00
Common Stock, $3 par value, authorized
22,000 shares, 13,170 shares issued
and 12,990 shares outstanding, 180
Shares in Treasury
39
5
1
0
00
Additional Paid-in Capital:
Paid-in Capital in Excess of Par Value– Preferred
$13
0
0
0
00
Paid-in Capital in Excess of Par Value –
Co
5
5
0
0
00
Paid-in Capital in Excess of Par Value –
Stock Dividend
51
4
7
0
00
Paid-in Capital from Treasury Stock
1
2
0
00
Total Additional Paid-in Capital
70
0
9
0
00
Total Paid-in Capital
137
5
0
0
00
Retained Earnings
204
4
0
0
00
Deduct: Treasury Stock
3
2
4
0
00
Total Stockholders’ Equity
$338
6
6
0
00
SOLUTIONS TO SET B PROBLEMS
PROBLEM 19B-1
a.
(Redemption value
+ Dividends in arrears)
/ Preferred shares
outstanding
= Book value
Preferred
($ 416,000
+ $ 0)
/ 4,000
= $104.00
(Stockholders’ equity
– Amount assigned to
preferred)
/ Common shares
outstanding
= Book value
Common
($ 988,200
– $ 416,000)
/ 6,400
= $89.41
b.
(Redemption value
+ Dividends in arrears)
/ Preferred shares
outstanding
= Book value
Preferred
($ 416,000
+ $ 83,200)
/ 4,000
= $124.80
outstanding
= Book value
Common
($ 988,200
PROBLEM 19B-2
RACETTE CORPORATION
GENERAL JOURNAL
PAGE 4
Date
201X
Account Titles and Description
PR
Dr.
Cr.
July
2
Retained Earnings
234
0
0
0
00
Dividends Payable
234
0
0
0
00
Aug.
1
Dividends Payable
234
0
0
0
00
Cash
234
0
0
0
00
4
Retained Earnings
152
1
0
0
00
Common Stock Dividend Distributable
81
9
0
0
00
Paid-in Capital in Excess of Par Value—Stock
Dividend
70
2
0
0
00
Sept.
12
Common Stock Dividend Distributable
81
9
0
0
00
Common Stock
81
9
0
0
00
Oct.
1
Retained Earnings
883
7
4
0
00
Common Stock Dividend Distributable
281
1
9
0
00
Paid-in Capital in Excess of Par Value—Stock
Dividend
602
5
5
0
00
Nov.
2
Common Stock Dividend Distributable
281
1
9
0
00
Common Stock
281
1
9
0
00