Question

EXHIBIT 8 Stockholders' Equity Section of a Balance Sheet Telex Inc. Balance Sheet December 31, 20Y7 Stockholders' Equity Paid-in capital: Preferred 1096 stock, $50 par (2,000 shares authorized and issued) Excess over par $100,000 10,000 Paid-in capital, preferred stock $ 110,000 Common stock, $20 par (50,000 shares authorized, 45,000 shares issued)... $900,000 190,000 Method 1 Paid-in capital, common stock 1,090,000 2,000 Total paid-in capital... $1,202,000 350,000 1,552,000 (27000 $1,525,000 Stockholders' Equity Contributed capital: Preferred 1096 stock, $50 par(2,000 shares authorized and Common stock, $20 par (50,000 shares authorized, Additional paid-in capital 100,000 900,000 Method 2 202,000 Total contributed capital 1,202,000 350,000 1,552,000 Treasury stock (600 shares at cost) $1,525,000

Answer 1

Shareholder's equity
Paid in capital
Common stock, $2 par (100000 shares authorized, 75000 shares issued)	$      1,50,000.00
Excess over par	$   22,50,000.00
Paid in capital- Common stock		$ 24,00,000.00
From sale of Treasury stock		$        60,000.00
Total Paid in capital			$       24,60,000.00
Retained earnings			$   1,08,80,000.00
Total			$   1,33,40,000.00
Treasury stock (5000 shares at cost)			$       (1,40,000.00)
Total Stockholder's equity			$   1,32,00,000.00