Question

Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet using Method 1 of

Exhibit 8

. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Two hundred fifty thousand shares of common stock are authorized, and 18,500 shares have been reacquired.

Common Stock, $50 par	$9,600,000
Paid-In Capital from Sale of Treasury Stock	312,000
Paid-In Capital in Excess of Par—Common Stock	3,420,000
Retained Earnings	18,950,000
Treasury Stock	1,202,500

Stockholders’ Equity

Prepare the Stockholders’ Equity section of the balance sheet using Method 1 of

Exhibit 8

. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtractive or negative numbers use a minus sign.

Stockholders’ Equity

1	Paid-in capital:
2
3
4
5
6
7
8
9
10

Answer 1