The following data were compiled prior to preparing the balance sheet of Conviction corporation as of December 31, 2005Authorized Common stock, 100 par value Cash Dividend payable Donated Capital Gain on treasury stock Net unrealized loss on financial Asset – FVOCI Investment in Associate- 25% control Premium on capital stock Premium on Bond payable Reserve for Bond sinking Fund Cash Reserve for Depreciation Revaluation increment on property Receivable from factor Retained Earnings, unappropriated Subscribed Share capital Stock subscription Receivable Stock warrants outstanding Treasury stock, at cost Unissued common stock Allowance for doubtful accounts 4,000,000 160,000 800,000 80,000 96,000 300,000 320,000 240,000 400,000 600,000 800,000 74,000 720,000 480,000 120,000 200,000 144,000 800,000 96,000

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How much is total stockholder’s equity?

a. 6640000

b. other answer

How much is Common stock issued?

a. 3200000

b. other answer

How much is additional paid in capital

a. 1400000

b. other answ

How much is appropriated retained earnings?


b. other answer

How much is legal capital

a. 3680000

b. other answer


Q1 answer:

Total stockholder’s equity = Issued share capital + Subscribed share capital-Subscriptions receivable + Additional paid in capital + Appropriated Retained Earnings + Unappropriated retained earnings + Revaluation surplus – Net unrealized loss on financial asset FVOCI- Treasury Stock

Issued share capital=(Q2)=3,200,000

Subscribed share capital=480,000

-Stock Subscription receivable=-120,000

Additional paid in capital=(Q3)=1,400,000

Appropriated Retained Earnings=(Q4)=544,000

Unappropriated retained earnings=720,000-Appropriated for Treasury stock=720,000-144,000=576,000

Revaluation surplus=800,000

– Net unrealized loss on financial asset FVOCI=-96,000

-Treasury shares=-144,000

Total Stockholders Equity=6,640,000

Q2 answer: (a) 3200000

Common stock issued= Authorized Common stock, 100 par value – Unissued Common stock

Common stock issued= 4,000,000 – 800,000

Common stock issued= 3200000

Q3 answer: (a) 1400000

Additional paid in capital= Premium on share capital + Gain on sale of treasury shares + Donated capital + Stock warrants outstanding

Additional paid in capital= 320,000+ 80,000+800,000+200,000

Additional paid in capital= 1400000

Q4 answer: (a) 544000

Appropriated retained earnings= Appropriated for sinking fund+Appropriated for treasury shares

Appropriated retained earnings= 400,000+144,000

Appropriated retained earnings= 544,000

Q5 answer: (a) 3680000

Legal capital= Issued share capital + Subscribed share capital

Legal capital= (Authorized share capital – unissued share capital ) + Subscribed share capital

Legal capital= (4,000,000 – 800,000) + 480,000

Legal capital= 3680000