Using the following accounts and balances, prepare theStockholder’s Equity secti
ID: 2458283 • Letter: U
Question
Using the following accounts and balances, prepare theStockholder’s Equity section of the balancesheet. Thirty thousand shares of common stock are authorized,and 2,000 shares have been reacquired.
Common stock, $80par $2,000,000
Paid in Capital in Excess ofPar 315,000
Paid in Capital from the sale of TreasuryStock 33,000
RetainedEarnings 1,112,000
Stockholders' Equity
Paid in Capital:
Retained Earnings
TOTAL Retained Earnings &
Paid in Capital
Deduct Treasury Stock
Stockholders' Equity
Paid in Capital:
Retained Earnings
TOTAL Retained Earnings &
Paid in Capital
Deduct Treasury Stock
Explanation / Answer
Stockholders equity Contributed capital Common stock $ 80 par value,30,000 authorized, 25,000 issued, 23,000 shares outstanding 2,000,000 paid in capital in excess of par 315,000 Total contributed capital 2,315,000 Retained earnings 1,112,000 Total retained earnings & paid in capital 3,427,000 Less treasury stock 180,000 Total stockholders equity 3,247,000 This is how the stockholders equity section looks like ----------------------------------------------------------------------- If you want in the format you have, then the answer would be Paid in capital 2,315,000 Retained earnings 1,112,000 Total retained earnings & paid incapital 3,427,000 deduct treasurystock 180,000
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