ckholders\' Equity Section of Balance Sheet Specialty Auto Racing Inc. retails r
ID: 2587031 • Letter: C
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ckholders' Equity Section of Balance Sheet
Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing on July 31, the end of the current year:
Fifty thousand shares of preferred and 200,000 shares of common stock are authorized. There are 3,600 shares of common stock held as treasury stock.
Prepare the Stockholders' Equity section of the balance sheet as of July 31, the end of the current year using Method 1 of Exhibit 9.
Common Stock, $10 par $340,000 Paid-In Capital from Sale of Treasury Stock-Common 25,600 Paid-In Capital in Excess of Par-Common Stock 102,000 Paid-In Capital in Excess of Par-Preferred Stock 63,900 Preferred 4% Stock, $50 par 1,065,000 Retained Earnings 1,947,700 Treasury Stock-Common 39,600Explanation / Answer
Statement of Stockholders' Equity
Particulars Amount Common Stock 340000 Add: Preferred stock 1,065,000 Add : Additional paid in capital (102000+63900) 165900 Add : Retained earning (1947700-25600) 1922100 Less : Treasury Stock-Common (39600) Total Stockholders' Equity 3453400Related Questions
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