Question

The stockholders' equity accounts of Provance Company at December 31, 20XX are presented below: Preferred Stock, 7%, $100 par $ Common Stock, $10 par 200,000 $ 1,000,000 Paid-in-Capital in Excess of Par Value-Preferred Stock $ 75,000 Paid-in-Capital in Excess of Par Value Common Stock 150,000 Paid-in Capital from Sale of Treasury Stock $ 25,000 Stock Dividend Distributable Common Stock $ 127,500 Treasury Stock 2,000 Shares $ 50,000 Retained Earnings $ 745,000 Prepare the stockholders' equity section, in good form, calculating shares issued and outstanding.

Answer 1

Balance Sheet (Partial)
At December 31, 20XX
Stockholders' equity
Paid-in capital:
Capital stock:
Preferrd stock	$200,000
Common stock	$1,000,000
Total capital stock		$1,200,000
Additional Capital:
Paid-in capital in excess of par - Preferred stock	$75,000
Paid-in capital in excess of stated value-Common stock	$150,000
Paid in capital from treasury stock	$25,000
Total additional capital		$250,000
Total Paid in capital		$1,450,000
Retained earnings		$745,000
Total Paid in capital and retained earnings		$2,195,000
(Less): Treasury stock		($50,000)
Total stockholders' equity		$2,145,000

.

	Common Shares	Preferred shares
Shares issued	1,000,000	20,000
	[$1,000,000/$10 par]	[$200,000/$100 par]
Less: Treasury shares	-2,000
Shares Outstanding	998,000	20,000