Reference no: EM132889121

Problem - Contributed Capital Adams Company's records provide the following information on December 31, -2019:

Account Title - Amount

Additional Paid-in Capital 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

Additional Paid-in Capital 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 out-standing. Two hundred shares have been subscribed at $120 per share. The stock pays an 8% dividend, is cumulative, and is callable at $130 per share.

3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually.

Required - Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.