Problem 8-5 On December 31, 2016, Wildhorse Co. had 1,375,000 shares of $7 par common stock issued and outstanding. At December 31, 2016, stockholders' equity had the amounts listed here. Common Stock Additional Paid-in Capital Retained Earnings $9,625,000 1,910,000 1,295,000 Transactions during 2017 and other information related to stockholders' equity accounts were as follows. 1. On January 10, 2017, issued at $109 per share 117,000 shares of $104 par value, 8% cumulative preferred stock. 2. On February 8, 2017, reacquired 17,100 shares of its common stock for $12 per share. 3. On May 9, 2017, declared the yearly cash dividend on preferred stock, payable June 10, 2017, to stockholders of record on May 31, 2017. 4. On June 8, 2017, declared a cash dividend of $1.70 per share on the common stock outstanding, payable on July 10, 2017, to stockholders of record on July 1, 2017. 5. Net income for the year was $3,587,000. Prepare the stockholders' equity section of Wildhorse balance sheet at December 31, 2017.

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WILDHORSE COMPANY Partial Balance Sheet December 31, 2017 Stockholders’ equity Paid-in capital Capital stock Preferred stock 12168000 Common stock 9625000 Total capital stock 21793000 Additional paid-in capital Paid in capital in excess of par value -preferred stock 585000 Paid in capital in excess of par value -common stock 1910000 Total additional paid-in capital 2495000 Total paid-in capital 24288000 Retained earnings 2573570 Total paid-in capital and retained earnings 26861570 Less: Treasury stock (205200) Total stockholders’ equity $26656370 Preferred stock = 117000*104 = 12168000 In excess of par value -preferred stock = 117000*(109-104) = 585000 Retained earnings = 1295000+3587000-((1375000-17100)*1.70) = 2573570 Treasury stock = 17100*12 = 205200.

Problem 8-5 On December 31, 2016, Wildhorse Co. had 1…

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WILDHORSE COMPANY Partial Balance Sheet December 31, 2017
Stockholders’ equity
Paid-in capital
Capital stock
Preferred stock	12168000
Common stock	9625000
Total capital stock		21793000
Additional paid-in capital
Paid in capital in excess of par value -preferred stock	585000
Paid in capital in excess of par value -common stock	1910000
Total additional paid-in capital		2495000
Total paid-in capital		24288000
Retained earnings		2573570
Total paid-in capital and retained earnings		26861570
Less: Treasury stock		(205200)
Total stockholders’ equity		$26656370

Preferred stock = 117000*104 = 12168000

In excess of par value -preferred stock = 117000*(109-104) = 585000

Retained earnings = 1295000+3587000-((1375000-17100)*1.70) = 2573570

Treasury stock = 17100*12 = 205200

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