Question

The following accounts appear in the ledger of Skysong, Inc. after the books are closed at December 31, 2020. Common Stock, no par, $3 stated value, 375,000 shares authorized; 314,000 shares issued Common Stock Dividends Distributable Paid-in Capital in Excess of Stated Value-Common Stock Preferred Stock, $6 par value, 8%, 38,000 shares authorized; 25,900 shares issued Retained Earnings Treasury Stock (11,500 common shares) Paid-in Capital in Excess of Par-Preferred Stock Accumulated Other Comprehensive Loss $942,000 26,000 1,290,000 155,400 781,000 80,500 343,000 25,500 Prepare the stockholders' equity section at December 31, 2020, assuming retained earnings is restricted for plant expansion in the amount of $1 For capital stock first enter the preferred stock details. (Enter account name only and do not provide descriptive information.) Skysong, Inc. Balance Sheet (Partial)

Answer 1

Solution:

Skysong Inc.
Partial Balance Sheet
As at December 31, 2020
Particulars		Amount
Stockholders' Equity:
Paid in Capital:
Capital Stock:
Preferred Stock		$1,55,400
Common Stock	$9,42,000
Common Stock Dividend distributable	$26,000
		$9,68,000
Total capital Stock		$11,23,400
Additional Paid in Capital:
Paid in Capital in excess of Par -Preferred Stock	$3,43,000
Paid in Capital in excess of Stated value -Common Stock	$12,90,000
Total Additional paid in Capital		$16,33,000
Total paid in Capital		$27,56,400
Add: retained earnings		$7,81,000
Total paid in Capital and retained earnings		$35,37,400
Less: Accumulated Other Comprehensive Loss		$25,500
Less: Treasury Stock		$80,500
Total Stockholder's Equity		$34,31,400