P13-5A Prepare stockholders' equity section

The following stockholders' equity accounts arranged alphabetically are in the ledger of
Galindo Corporation at December 31, 2017.

Common Stock ($5 stated value) $2,000,000

Paid-in Capital from Treasury Stock 10,000
Paid-in Capital in Excess of Par-Preferred 679,000
Paid-in Capital in Excess of Stated Valu 1,600,000
Preferred Stock (8%, $50 par) 800,000
Retained Earnings 1,748,000
Treasury Stock (10,000 common shares) 130,000

Instructions
Prepare the stockholders' equity section at December 31, 2017.

Risky Fernando
2440083260

Galindo Corporation
Balance Sheet (Partial)
Stockholders' equity
Paid in-capital
Capital stock
8% Preferred stock, $50 par value,
16.000 shares issued
Common Stock $5 stated value
400.000 shares issued
Total capital stock
Additional paid-in capital
In excess of par-preffered stock $679,000
In excess of stated value-common stock 1,600,000
From treasury stock 10,000
Total additional paid-in capital
Total paid-in capital
Retained earnings
Total paid-in capital and retained earnings
Less: Treasury stock (10.000 common shares)
Total Stockholders' equity
in the ledger of

$800,000

2,000,000
2,800,000

2,289,000
5,089,000
1,748,000
6,837,000
130,000
$6,707,000
E14-17 Compute earnings per share under different assumptions
At December 31, 2017, Millwood Corporation has 2,000 shares of $100 par value, 8% preferred stock
outstanding and 100,000 shares of $10 par value common stock issued. Millwood's net income for the
year is $241,000.

Instructions
Compute the earnings per share of common stock under the following independent situations
(Round to two decimals).
(a) The dividend to preferred stockholders was declared. There has been no change in the
number of shares of common stock outstanding during the year.
(b) The dividend to preferred stockholders was not declared. The preferred stock is
cumulative. Millwood held 10,000 shares of common treasury stock throughout the year.

Risky Fernando
2440083260

A. EPS = Net Income - Dividen to preferred stock holder / Avarage outstanding shares
Net Income $241,000
Dividend to preferred stock $16,000
(2000 x $100 x 8%)
Outstanding share 100,000
Earning per share $2.25

B. Net Income $241,000

Dividend to preferred stock $16,000
Outstanding share (100.000-10.000) 90,000
Earning per share $2.50
 preferred stock
et income for the

t the year.