Question

The following accounts appear in the ledger of Horner Inc. after the books are closed at December 31. Common Stock, no par, $3 stated value, 393,000 shares authorized; 282,000 shares issued Common Stock Dividends Distributable Paid-in Capital in Excess of Stated Value-Common Stock Preferred Stock, $6 par value, 8%, 36,000 shares authorized; 25,500 shares issued Retained Earnings Treasury Stock (11,500 common shares) Paid-in Capital in Excess of Par-Preferred Stock $846,000 29,000 130,000 153,000 814,000 89,700 350,000 Prepare the stockholders' equity section at December 31, assuming retained earnings is restricted for plant expansion in the amount of $100,000. (Enter account name only and do not provide descriptive information.) HORNER INC. Balance Sheet (Partial)

Answer 1

Solution:

6 Horner Inc. Partial Balance Sheet At December 31 Stockholders' Equity: Paid in Capital: Capital Stock: Preferred Stock Common Stock Common Stock Dividend distributable 13 14 $153,000 15 $846,000 $29,000 16 17 $875,000 $1,028,000 18 19 20 $350,000 $130,000 21 22 Total capital Stock Additional Paid in Capital: Paid in Capital in excess of Par-Preferred Stock Paid in Capital in excess of Par -Common Stock Total Additional paid in Capital Total paid in Capital Retained earnings Total Paid in capital and retained earnings Less: Treasury Stock Total Stockholders' Equity 23 24 $480,000 $1,508,000 $814,000 $2,322,000 $89,700 $2,232,300 25 26 27 28 29 30 31 32 33 34 35 36 37 38. Sheet174 Sheet506 Sheet172 Sheet319 (3) She