The following accounts and their balances appear in the ledgerof Heart and Saul

Question

The following accounts and their balances appear in the ledgerof Heart and Saul Inc. on April 30 of the current year:

Common Stock, $50par                                                        900,000

Paid-In Capital in Excess ofPar                                            110,000

Paid-In Capital from Sale of TreasuryStock                         42,000

RetainedEarnings                                                                  3,178,000

TreasuryStock                                                                       210,000

Prepare the Stockholders’ Equity section of thebalance sheet as of April 30. Twenty-five thousand shares ofcommon stock are authorized, and 3,500 shares have beenreacquired.

(Text states, Total Stockholders’ equity,$4,020,000)

Explanation / Answer

                    Heart and Saul Inc.                      Balance sheet                        April 30, current year                             Stockholders' Equity Contributed Capital        Common stock , $ 50 Par        25,000 shares authorized ,21,500 shares        issued, 18,000outstanding                                              900,000    Addition paid incapital                                                       110,000 Total contributedcapital                                                      1,010,000 RetainedEarnings                                                               3,178,000 Total contributed capital and retainedearnings                       4,188,000 Less Treasury stock (3,500 shares at cost)          (210,000) + Paid in capital from sale of T.stock       42,000          Total stockholders' Equity          4,020,000

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