Question

Reporting Stockholders' Equity

Using the following accounts and balances, prepare the Stockholders' Equity section of the balance sheet using Method 1 of Exhibit 8. 100,000 shares of common stock authorized, and 10,000 shares have been reacquired.

Common Stock, $40 par	$2,800,000
Paid-In Capital from Sale of Treasury Stock	56,000
Paid-In Capital in Excess of Par—Common Stock	560,000
Retained Earnings	1,624,000
Treasury Stock	29,000

Stockholders' Equity
Paid-In Capital:
	$
		$
Total Paid-in Capital		$
Total		$
Total Stockholders' Equity		$

Answer 1

Answer:

Stock holders’ Equity
	Amount($)	Amount($)
Paid in capital:
Common stock, 100,000 shares authorized, 70,000 issued and outstanding	28,00,000
Add: Paid in capital in excess of par – common stock	5,60,000
		33,60,000
Add: paid in capital from sale of treasury stock		56,000
Total Paid in capital		34,16,000
Add: Retained earnings		16,24,000
Total		50,40,000
Less: Treasury Stock		29,000
Total Stock holders’ Equity		50,11,000