Contributed Capital
Response to the following problem:
The following is a list of selected accounts and ending account balances taken from the records of the Adams Company on December 31, 2010:
Account Title Amount
Premium on preferred stock $ 17,000
Common stock 75,000
Premium on bonds payable 4,000
Preferred stock 80,000
Bonds payable 100,000
Preferred stock subscribed 20,000
Retained earnings 121,000
Premium on common stock 84,000
Additional information:
1. Common stock has a $5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding.
2. Preferred stock has a $100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at $120 per share. The stock pays an 8% dividend, is cumulative and callable at $130 per share.
3. Bonds payable mature on January 1, 2014. They carry a 12% annual interest rate, payable semiannually
Required
Prepare the Contributed Capital section of the December 31, 2010 balance sheet for the Adams Company. Include appropriate parenthetical notes.