Question

Wildhorse Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were included in stockholders’ equity.

Preferred Stock, 159,600 shares		$ 3,192,000
Common Stock, 1,970,000 shares		9,850,000
Paid-in Capital in Excess of Par—Preferred Stock		193,000
Paid-in Capital in Excess of Par—Common Stock		27,534,000
Retained Earnings		4,424,000

The following transactions affected stockholders’ equity during 2021.

Jan. 1		29,100 shares of preferred stock issued at $22 per share.
Feb. 1		47,100 shares of common stock issued at $20 per share.
June 1		2-for-1 stock split (par value reduced to $2.50).
July 1		32,500 shares of common treasury stock purchased at $11 per share. Wildhorse uses the cost method.
Sept. 15		10,400 shares of treasury stock reissued at $12 per share.
Dec. 31		The preferred dividend is declared, and a common dividend of 46¢ per share is declared.
Dec. 31		Net income is $2,112,000.

Prepare the stockholders’ equity section for Wildhorse Company at December 31, 2021.

WILDHORSE COMPANY Stockholders' Equity December 31, 2021 Capital Stock Preferred Stock Common Stock Total Capital Stock Additional Paid-in Capital Paid-in Capital in Excess of Par - Preferred Stock Paid-in Capital in Excess of Stated Value - Common Stock Paid-in Capital from Treasury Stock Total Paid-in Capital Retained Earnings Total Paid-in Capital and Retained Earnings Less : Treasury Stock Total Stockholders' Equity

Answer 1

Stockholders equity- Wildhorse Corportation
Capital Stock:
Preferred Stock, Cumulative, Par Value $20 Per Share, ( 3192000+(29100*20)	$3,774,000
Common Stock, Par   Value $5Per Share, (9850000+47100*5)	$10,085,500
Total Capital Stock	$13,859,500
Additional Paid In Capital:
In Excess Of Par Value- Common Stock (27534000+(57100*15)	$28,390,500
In Excess Of Par Value- Preferred Stock (193000+ (29100*2)	$251,200
In Excess Of Par Value- Treasury Stock (10400*1)	$10,400
Total Paid In Capital	$42,511,600
Retained Earnings (4424000-(3774000*8%)-(1970000+47100-22100)*0.46)	$3,204,380
Total Paid In Capital And Retained Earnings	$45,715,980
Less: Treasury Stock (32500-10400)*11	($243,100)
Total Stockholders Equity	$45,472,880