Homework SourseThe following table presents the longterm liabilities and st
The following table presents the long-term liabilities and stockholders’ equity of Information Control Corp. one year ago:
During the past year, the company issued 10.8 million shares of new stock at a total price of $59.6 million, and issued $35.8 million in new long-term debt. The company generated $10.6 million in net income and paid $2.8 million in dividends.
Prepare the current balance sheet reflecting the changes that occurred at the company during the year. (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g., 1,234,567.)
| Long-term debt | $ | 65,800,000 | |
| Preferred stock | 4,080,000 | ||
| Common stock ($1 par value) | 15,800,000 | ||
| Capital surplus | 45,800,000 | ||
| Accumulated retained earnings | 135,800,000 | ||
Solution
Control Corp.
Current Balance sheet
Long Term Debt*
$101600000
Shareholder’s Equity
Preferred stock
$4080000
Common stock($1 par value)**
$26600000
Capital surplus***
$94600000
Accumulated Retained Earnings****
$143600000
Total Equity
$268880000
Total Liabilities and Equity
$370480000
Calculations are shown below:
*Long Term debt= Existing debt of $65800000 + New Issued $35800000= $101600000
** Common Stock= Existing $15800000 + New issued $10800000 = $26600000
*** Capital Surplus= Existing $45800000 + ($59600000- $10800000)= $94600000
**** Accumulated Retained Earnings= Existing $135800000 + (10600000- 2800000)= $143600000
| Control Corp. | |
| Current Balance sheet | |
| Long Term Debt* | $101600000 |
| Shareholder’s Equity | |
| Preferred stock | $4080000 |
| Common stock($1 par value)** | $26600000 |
| Capital surplus*** | $94600000 |
| Accumulated Retained Earnings**** | $143600000 |
| Total Equity | $268880000 |
| Total Liabilities and Equity | $370480000 |
