#16) The financial statements of Mountainpeak Employment services, Inc., reporte
ID: 2716335 • Letter: #
Question
#16) The financial statements of Mountainpeak Employment services, Inc., reported the following accounts (adapted, with dollar amounts in thousands except for par value):
Paid -in capital in excess of par................ $ 197 Total Revenues..........................$1,380
Other stockholders' equity (negative................(23) Accounts payable..........................420
Common stock, $0.01 par Retained earings.........................647
700 shares issued.....................................7 Other current liabilities..............$2,562
Long-term debt..........................................22 Total expenses.........................897
Prepare the stockholders' equity section of Mountainpeak's balance sheet. Net income has already been closed to Retained Earrings. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet. Enter amonts in the thousands except for par value. Use parentheses or a minus sign for numbers to be subtracted.)
Balance Sheet (Partial)
Stockholders' Equity $ _______ par, shares ___________ _______ _____
(Accounts payable, Common stock, _______________________________________ ________________
Long-term debt, other curent liabilities, _______________________________________ _________________
Other stockholders' equity, paid-in capital in excess of par, _________________________ _________________
Retain earnings, Total expenses, Total Revenues, Total Stockholders' equity _________________
Total Stockhol;ders' equity Treasury Stock,)
Explanation / Answer
Balance Sheet (Partial)
Stockholders' Equity $ 0.07par,
shares = 700,000
(Accounts payable = $420,000
Common stock= $0.07 x 700,000 = $49,000
Long-term debt = $22000
other current liabilities = $2562
Other stockholders' equity = -$23,000
Paid-in capital in excess of par = $197,000
Retain earnings = $647,000,
Total expenses = $897,000
Total Revenues $1,380,000
Therefore,
Total Stockholders' equity = Common stock + other stock holders equity +
Paid in capital + retained earnings
Total Stockholders' equity = $49,000-$23,000+$197,000+$647,000
= $870,000
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