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Using the following accounts and balances, prepare the stockholders’ equity sect

ID: 2564609 • Letter: U

Question

Using the following accounts and balances, prepare the stockholders’ equity section of the balance sheet. Fifty thousand shares of common stock are authorized, and 5,000 shares have been reacquired. Refer to the lists of Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter the amount as a negative number using a minus sign, if required.

1

Common Stock, $50 par

$1,250,000.00

2

Paid-In Capital in Excess of Par

800,000.00

3

Paid-In Capital from Sale of Treasury Stock

42,000.00

4

Retained Earnings

4,350,000.00

5

Treasury Stock

155,000.00

repare the stockholders’ equity section of the balance sheet. Fifty thousand shares of common stock are authorized, and 5,000 shares have been reacquired. Refer to the lists of Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter the amount as a negative number using a minus sign, if required.

Stockholders’ Equity

1

Contributed capital:

2

3

4

5

6

7

8

1

Common Stock, $50 par

$1,250,000.00

2

Paid-In Capital in Excess of Par

800,000.00

3

Paid-In Capital from Sale of Treasury Stock

42,000.00

4

Retained Earnings

4,350,000.00

5

Treasury Stock

155,000.00

repare the stockholders’ equity section of the balance sheet. Fifty thousand shares of common stock are authorized, and 5,000 shares have been reacquired. Refer to the lists of Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter the amount as a negative number using a minus sign, if required.

Stockholders’ Equity

1

Contributed capital:

2

3

4

5

6

7

8

Explanation / Answer

Stockholders’ Equity Stockholder's Equity Amount Amount Authorized Capital : 50,000 common stock of $ 50 Each $           25,00,000 Issued Capital : 25,000 Common Stock of $ 50 Par $               12,50,000 Less: Treasury Stock 31000 shares of $ 50 each $               -1,55,000 $           10,95,000 Paid in Capital in Excess of par $                 8,00,000 Add: Paid in Capital From Sale Treasury Stock $                     42,000 $             8,42,000 Retained Earnings $           43,50,000 TOTAL $           62,87,000