Summit Apparel has the following accounts at December 31: Common Stock, $1 par v

Question

Summit Apparel has the following accounts at December 31: Common Stock, $1 par value, 1,400,000 shares issued; Paid-in Capital, $17.40 million; Retained Earnings, $10.40 million; and Treasury Stock, 54,000 shares, $1.188 million.

Prepare the stockholders’ equity section of the balance sheet. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in dollars, not in millions.)

Find the additional paid-in capital, treasury stock, retained earnings.

And after additional paid-in capital, there is one more thing missing.

Summit Apparel has the following accounts at December 31: Common Stock, $1 par value, 1,400,000 shares issued; Paid-in Capital, $17.40 million; Retained Earnings, $10.40 million; and Treasury Stock, 54,000 shares, $1.188 million.

Explanation / Answer

Paid in capital is the total amount received on account of issue of sharses

Paid in capital - par value = additional paid in capital

Stockholders Equity Amount Common stock 1400000 (1400000 x $ 1 par) Additional paid in capital 16000000 Paid In capital 17400000 Retained Earnings 10400000 Less: Treasury Stock 1188000 (54000 shares) Total Stockholder equity 26612000

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