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P13-5A Prepare stockholders' equity section
The following stockholders' equity accounts arranged alphabetically are in the ledger of
Galindo Corporation at December 31, 2017.
$2,000,000
10,000
679,000
1,600,000
800,000
1,748,000
130,000
Instructions
Prepare the stockholders' equity section at December 31, 2017.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
Stockholders' equity
Paid-in capital
8% Preferred stock, $50 par noncumulative,
16,000 shares issued and outstanding Value
Common stock, no par, $5 stated value,
400,000 shares issued and 390,000 outstanding Value
Total capital stock ?
Additional paid-in capital
In excess of par-preferred stock Value
In excess of stated value-common stock Value
From treasury stock Value
Total additional paid-in capital ?
Total paid-in capital ?
Retained earnings Value
Total paid-in capital and retained earnings ?
Less: Treasury stock (10,000 shares) Value
Total stockholders' equity ?
After you have completed the requirements of P13-5A, consider the additional question.
Answers are on the other tab in this file.
1. Suppose the stated value of common stock changed to $8 per share and number of shares outstanding
remained the same. Assuming that the shares were issued for the same total price, how does this change
affect the Capital stock and Additional paid-in capital section?
Capital stock
GALINDO CORPORATION
Treasury Stock (10,000 common shares)
Common Stock ($5 stated value)
Paid-in Capital from Treasury Stock
Paid-in Capital in Excess of Par-Preferred Stock
Paid-in Capital in Excess of Stated Value-Common Stock
Preferred Stock (8%, $50 par)
Retained Earnings
P13-5A Solution
Stockholders' equity
Paid-in capital
Capital stock
8% Preferred stock, $50 par noncumulative,
16,000 shares issued and outstanding $800,000
Additional paid-in capital
In excess of par-preferred stock $679,000
In excess of stated value-common stock 1,600,000
From treasury stock 10,000
Total additional paid-in capital 2,289,000
GALINDO CORPORATION
P13-5A Solution to additional question
1. Suppose the stated value of common stock changed to $8 per share and number of shares outstanding
remained the same. Assuming that the shares were issued for the same total price, how does this change
affect the Capital stock and Additional paid-in capital section?
Stockholders' equity
Paid-in capital
Capital stock
8% Preferred stock, $50 par noncumulative,
16,000 shares issued and outstanding $800,000
Additional paid-in capital
In excess of par-preferred stock $679,000
In excess of stated value-common stock 400,000
From treasury stock 10,000
Total additional paid-in capital 1,089,000
Total paid-in capital 5,089,000
GALINDO CORPORATION
