Reporting Stockholders\' Equity using the following accounts and authorized, and

ID: 2404921 • Letter: R

Question

Reporting Stockholders' Equity using the following accounts and authorized, and 2,000 shares have been reacquired. Common Stock, $40 par Paid-In Capital from Sale of Treasury Stock Pald-In Capital in Excess of Par-Common Stock Retained Earnings Treasury Stock balances, prepare the Stockholders' Equity section of the balance sheet using Method 1 of Exhibit 8. 100,000 shares of common stock $2,800,000 168,000 350,000 1,568,000 106,000 Stockholders' Equity Paid-In Capital: Total Paid-n Capital Total Total Stockholders' Equity

Explanation / Answer

Stock holders’ Equity

Paid in capital:

Common stock, 100000 shares authorized, 70000 issued and outstanding

$ 2,800,000

Add: Paid in capital in excess of par – common stock

$ 350,000

$ 3,150,000

Add: paid in capital from sale of treasury stock

$ 168,000

Total Paid in capital

$ 3,318,000

Add: Retained earnings

$ 1,568,000

Total

$ 4,886,000

Less: Treasury Stock

$ 106,000

Total Stock holders’ Equity

$ 4,780,000