Question

The following Stockholders' Equity section of the balance sheet prepared as of the end of the current year contains errors.

Prepare a corrected Stockholders’ Equity section using Method 1 of

Exhibit 9

. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted negative numbers use a minus sign.

Stockholders’ Equity

1	Paid-in capital:
2	Preferred 2% stock, $80 par
3	(125,000 shares authorized and issued)	$10,000,000.00
4	Excess of issue price over par	500,000.00
5	Paid-in capital, preferred stock		$10,500,000.00
6	Retained earnings		96,700,000.00
7	Treasury stock (75,000 shares at cost)		1,755,000.00
8	Dividends payable		430,000.00
9	Total paid-in capital		$109,385,000.00
10	Common stock, $20 par
11	(1,000,000 shares authorized, 825,000 shares issued)		17,655,000.00
12	Organizing costs		300,000.00
13	Total stockholders’ equity		$127,340,000.00

Answer 1