Question

The following information is given to you from the books of the Finance Corporation of Canada on December 31, 2019. Authorized shares of 100,000 shares of common stock of $1 par. Additional paid in capital from issue of common stock $10,000 Issued shares of common stock 50,000 shares Outstanding shares of common stock 49,000 shares Treasury stock, 1,000 shares at cost $15,000 Retained earnings balance $105,000 Required: Use the information presented above to prepare the stockholders’ equity section of the balance sheet.

Answer 1

	Stock Holders equity
	Particulars	Amount	Amount
	Paid In Capital:
	Common Stock	49000
	Preferred Stock
	Paid in capital excess of Par value - Common Stock	10000
	Paid in capital excess of Par value- Preferred Stock
			59000
	Retained Earnings		105000
	Less; Treasury Stock		15000
	Total Stockholders Equity		149000