Pringle Corporation has been authorized to issue 20,000 shares of $100 par value, 7%, noncumulative preferred stock and 1,000,000 shares of no-par common stock.
The corporation assigned a $5 stated value to the common stock. At December 31, 2014, the ledger contained the following balances pertaining to stockholders' equity.
| Preferred Stock |
$150,000 |
| Paid-in Capital in Excess of Par Value-Preferred Stock |
20,000 |
| Common Stock |
2,000,000 |
| Paid-in Capital in Excess of Stated Value-Common Stock |
1,520,000 |
| Treasury Stock- (4,000 common shares) |
36,000 |
| Retained Earnings |
82,000 |
The preferred stock was issued for $170,000 cash. All common stock issued was for cash. In November 4,000 shares of common stock were purchased for the treasury at a per share cost of $9. No dividends were declared in 2014. Warning