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#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