Question

Stockholders' 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: Common Stock, $10 par $840,000 Paid-In Capital from Sale of Treasury Stock-Common 63,300 Paid-In Capital in Excess of Par-Common Stock 252,000 Paid-In Capital in Excess of Par-Preferred Stock 72,300 Preferred 4% Stock, $50 par 1,205,000 Retained Earnings 2,967,800 Treasury Stock-Common 45,100 One hundred thousand shares of preferred and 400,000 shares of common stock are authorized. There are 4,100 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. Specialty Auto Racing Inc. Stockholders' Equity July 31, 20XX Paid-In Capital: Preferred 4% Stock, $50 Par (100,000 Shares Authorized, 24,100 Shares Issued) Excess of Issue Price Over Par Paid-in capital, preferred stock Common Stock, $10 Par (400,000 Shares Authorized, 84,000 Shares Issued) Excess of Issue Price Over Par Paid-in capital, common stock From Sale of Treasury Stock Total Paid-In Capital Retained Earnings Total Treasury Stock (4,100 Shares at Cost) Total Stockholders Equity

Answer 1

Paid-in Capital:
Preferred 4% stock, $50 par (100,000 shares authorized, 24100 shares issued)	1205000
Excess of issue price over par	72300
Paid in Capital, Preferred Stock		1277300
Common stock, $10 par (400,000 shares authorized, 84000 shares issued)	840000
Excess of issue price over par	252000
Paid in Capital, Common Stock		1092000
From sale of Treasury Stock		63300
Total Paid-in Capital			2432600
Retained Earnings			2967800
Total			5400400
Treasury Stock (4,100 shares at Cost)			45100
Total Stockholders' Equity			5355300
Note: Treasury Stock (4,100 shares at Cost) can alternatively be written with a minus sign.