Question 4 25 points The following are selected accounts for

Question 4 (25 points) The following are selected accounts for the Jennifer Company after all Fiscal Year December 31, 2017, adjusting entries & closing entries have been posted. All balances are normal. Account Amount Common Stock, $6 par $210,000 Treasury Stock, at cost $10 per share 35,000

Solution

Jennifer company

Balance sheet (partial)

December 31, 2017

Stockholders\' equity
Common Stock :
Preferred Stock, $100 par, 5% cumulative, 6,000 shares authorized, 500 shares issued & outstanding	50,000
Common Stock, $6 par, 60,000 shares authorized, 35,000 shares issued & 31,500 shares outstanding	210,000	260,000
Additional paid in capital :
Paid in capital in excess of par, preferred	6000
Paid in capital in excess of par, common	40000	46000
Total paid in capital		306000
Retained earnings		170000
Total paid in capital and retained earnings		476000
Less: Treasury stock, 3500 shares at cost		(35000)
Total stockholders\' equity		441000