Question

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 $380,000 Paid-In Capital in Excess of Par-Common Stock 114,000 Paid-In Capital in Excess of Par-Preferred Stock 89,700 Paid-In Capital from Sale of Treasury Stock-Common 28,700 Preferred 4% Stock, $50 par 1,495,000 Retained Earnings 2,571,000 Treasury Stock-Common 56,100 Fifty thousand shares of preferred and 200,000 shares of common stock are authorized. There are 5,100 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 (50,000 shares authorized, 29,900 shares issued) $ Excess of issue price over par $ Common stock, $10 par (200,000 shares authorized, 38,000 shares issued) $ Excess of issue price over par From sale of treasury stock Total paid-in capital $ Retained earnings Incorrect Total $ Deduct treasury stock (5,100 shares at cost) Total stockholders' equity $

Answer 1