Question

Sarasota Corp. has been authorized to issue 20,400 shares of $100 par value, 6%, noncumulative preferred stock, and 1,140,000 shares of no-par common stock. The corporation assigned a $4 stated value to the common stock. On December 31, 2022, the ledger contained the following balances pertaining to stockholders’ equity. Preferred Stock $154,000 Paid-in Capital in Excess of Par Value—Preferred Stock 21,400 Common Stock 1,980,000 Paid-in Capital in Excess of Stated Value—Common Stock 1,550,000 Treasury Stock (4,100 common shares) 32,800 Retained Earnings 82,600 Accumulated Other Comprehensive Income 49,400 The preferred stock was issued for $175,400 cash. All common stock issued was for cash. In November 4,100 shares of common stock were purchased for the treasury at a per share cost of $8. No dividends were declared in 2022. Prepare the stockholders’ equity section of the balance sheet at December 31, 2022.

Answer 1

Stockholders’ equity
As at December 31, 2022
		Amount $
6% Non-Cumulative Preferred Stock , $100 par value	154,000
Paid-in Capital in Excess of Par Value—Preferred Stock	21,400
Common Stock, $ 4 Stated Value	1,980,000
Paid-in Capital in Excess of Stated Value—Common Stock	1,550,000
Total Capital Stock		3,705,400
Add: Retained earnings		82,600
Add: Accumulated Other Comprehensive Income		49,400
Less: Treasury Stock at cost		-32,800
Total Stockholder's Equity		3,804,600