accounting hw due today before 5pm

Problem #1: (15 points)

The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Southern Corporation at December 31, 2014.

Common Stock ($5 stated value) $2,200,000

Paid-in Capital in Excess of Par—Preferred Stock 280,000

Paid-in Capital in Excess of Stated Value—Common Stock 800,000

Preferred Stock (8%, $100 par, noncumulative) 500,000

Retained Earnings 1,334,000

Treasury Stock—Common (10,000 shares) 120,000

Instructions

Prepare the stockholders’ equity section of the balance sheet at December 31, 2014.

Problem #2: (10 points )

The adjusted trial balance for Holly Corporation at the end of 2014 contained the following accounts:

Bonds payable, 10% $700,000

Interest payable 20,000

Discount on bonds payable 40,000

Lease liability 50,000

Mortgage notes payable, 9%, due 2017 90,000

Accounts payable 120,000

Instructions

(a) Prepare the long-term liabilities section of the balance sheet.

(b) Indicate the proper balance sheet classification for the accounts listed above that do not belong in the long-term liabilities section.

Problem #1: ANSWERS (15 points)

Southern Corporation
Stockholders’ Equity Section of Balance Sheet
December 31, 2014

Problem #2: ANSWERS (10 points)

Holly Corporation
Stockholders’ Equity Section of Balance Sheet
December 31, 2014