Intermediate Accounting: P16-11 The Byrd Company's contributed Capital section

Intermediate Accounting

P16-11
The Byrd Company's contributed Capital section of its January 1, 2010 balance sheet is as follows:
Preferred stock (6%, $50 par, 8,000 shares authorized, 3,400 shares issued and outstanding) 170,000
Common Stock ($10 stated value, 30,000 shares authorized, 12,000 shares issued and outstanding) 120,000
Preferred stock subscribed (800 shares subscribed at $54 per share) 40,000
Additional paid in capital on preferred stock 12,800
Additional paid in capital on common stock 72,000
Total contributed capital $414,800

During 2010, the company entered into the following transactions:
Jan 4. Established a compensatory share option plan for its key executives. The options west after a three year service period. The estimated fair value of the options expected to be exercised is $81,000.
Mar 5. Received the remaining $40 per share on the subscribed preferred stock and issued the shares.
Apr 23. Sold 300 shares of preferred stock at $55 per share.
May 4. Received a subscription down payment of $6 per share on 1,000 shares of common stock. The remaining $11 per share balance is due in 60 days.
July 2. Received the remaining balance on subscribed common stock and issued the shares.
Sept 21. Purchased building by paying $9,000 cash and issuing 800 shares of common stock and 450 shares of preferred stock. Common and preferred stock are currently for $19 and $57 per share respectively.
Oct 12. Reacquired 900 shares of common stock at $19.50 per share. The company uses the cost method to account for treasury stock.
Nov 15. Issued for $32,000 a contribution of 700 shares of common stock and 12% bonds with a face value of $20,000. The common stock is currently selling for $18 per share. No market value exists for the bonds.
Dec 14. Reissued the 900 shares of treasury stock at $20.50 per share
Dec 28. Distributed a $3.00 per share dividend to all outstanding preferred stock and a $1.50 per share dividend to all common stock outstanding on this date ( debit retained earnings and credit cash for each dividend0
Dec 31. Declared a two for one stock split on the common stock, reducing the stated value to $4 per share and increasing the authorized shares to 60,000.
Required:
1. Prepare journal entries to record the preceding transactions.
2. Prepare the contributed capital section of Byrd's Dec 31 2010 balance sheet
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