Question

The stockholders' equity section of Case Corporation at December 31, 2022
included the following accounts:

Preferred stock ............................  $240,000 
Common stock ...............................  $520,000
Paid-in capital – preferred stock ..........      ?
Paid-in capital – common stock .............  $584,000
Retained earnings ..........................  $152,000
Treasury stock .............................      ?
Paid-in capital – treasury stock ...........  $ 18,000

Additional information appears below:

1.  The preferred stock has a $40 par value and 6,000 shares
    are issued and outstanding.

2.  The common stock has an $8 par value. There are 65,000
    shares issued and 61,000 shares outstanding.

3.  The treasury stock represents 4,000 shares of common
    stock re-acquired at a cost of $14 per share.

4.  The preferred stock was issued for an average price of
    $84 per share.

Calculate the total stockholders' equity at December 31, 2022.

Answer 1

Answer
Particulars	Amount $	Calculation
Preferred stock	2,40,000
Common Stock	5,20,000
Paid in capital-Preferred stock	2,64,000	6000*(84-40)
Paid in capital-Common stock	5,84,000
Paid in capital-Treasury stock	18,000
Retained earnings	1,52,000
Less: Treasury Stock	-56,000	4000*14
Total stockholders' equity, December 31, 2022	17,22,000