Question

Stockholders' Equity Section of Balance Sheet

Premium Imports Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Premium Imports Inc. on November 30, the end of the current year:

Common Stock, $10 par	$600,000
Paid-In Capital in Excess of Par-Common Stock	180,000
Paid-In Capital in Excess of Par-Preferred Stock	57,900
Paid-In Capital from Sale of Treasury Stock-Common	45,200
Preferred 4% Stock, $50 par	965,000
Retained Earnings	2,254,700
Treasury Stock-Common	36,300

One hundred thousand shares of preferred and 400,000 shares of common stock are authorized. There are 3,300 shares of common stock held as treasury stock.

Prepare the Stockholders' Equity section of the balance sheet as of November 30, the end of the current year.

Premium Imports Inc.
Stockholders' Equity Section of the Balance Sheet
November 30
Paid-in capital:
Preferred 4% stock, $50 par (100,000 shares authorized, 19,300 shares issued)	$
Excess of issue price over par		$
Common stock, $10 par (400,000 shares authorized, 60,000 shares issued)	$
Excess of issue price over par
From sale of treasury stock
Total paid-in capital		$
Retained earnings
Total		$
Deduct treasury stock (3,300 shares at cost)
Total stockholders' equity:			$

Answer 1

Premium Imports Inc.
Stockholders' Equity Section of the Balance Sheet
November 30
Paid-in capital:
Preferred 4% stock, $50 par (100,000 shares authorized, 19,300 shares issued)	$ 965,000
Excess of issue price over par	57,900	$ 1,022,900
Common stock, $10 par (400,000 shares authorized, 60,000 shares issued)	$ 600,000
Excess of issue price over par	180,000	$    780,000
From sale of treasury stock		45,200
Total paid-in capital			$ 1,848,100
Retained earnings			2,254,700
Total			$ 4,102,800
Deduct treasury stock (3,300 shares at cost)			36,300
Total stockholders' equity:			$ 4,066,500