Question

Chapter 13 Homework Stockholders' Equity Section of Balance Sheet Below is the stockholders' Equity section of the balance sheet prepared as of the end of the current year $10,000,000 500,000 Stockholders' Equity Pald-in capital: Preferred 2% stock, $80 par (125,000 shares authorized and issued) Excess of issue price over par Retained earnings Treasury stock (75,000 shares at cost) Dividends payable Total paid-in capital Common stock, 520 par (1,000,000 shares authorized, 825,000 shares issued) Organizing costs Total stockholders' equity Prepare a corrected Stockholders' Equity section. $10,500,000 96,700,000 1,755,000 430,000 $109,385,000 17,655,000 300,000 $127,340,000 Stockholders' Equity Paid-in Capital Preferred 2% stock, 580 par (125,000 shares authorized and issued) 10,000,000 Paid-in Capital, Preferred Stock Common stock, 520 par 1,000,000 shares authorized, 825,000 shares issued) U Total paid-in capital Total Total stockholders' equity

Answer 1

$ $ 1,00,00,000 5,00,000 $ 1,05,00,000 Stockholders Equity Paid-In-Capital preferred 2% stock, $80 par (125,000 shares authorised and issued) Excess of issue price over par Paid-In-Capital, Preferred Stock Common Stock, $20 par (1,000,000 shares authorized, 825,000 shares issued) Excess of issue price over par Paid-In-Capital, Common Stock Total Paid-in-capital Retained Earnings Total Less: Treasury Stock(75,000 shares at cost) Total Stockholders' equity $ $ 1,65,00,000 11,55,000 $ 1,76,55,000 $ 2,81,55,000 $ 9,64,00,000 $ 12,45,55,000 $ 17,55,000 $ 12,28,00,000 Workings 1) Common Stock = 825000 x $20 par = 16,500,000 Hence remaining 1,155,000 will go in Excess of issue over par 2) Retained earning = 96,700,000-300,000 = 96,400,000