Question

The following are selected accounts and balances from the records of Doran Corporation on June 30, 2017.

Common Stock, $10 par value, 75,000 shares authorized, 54,000 shares issued $540,000

Paid-in Capital in Excess of Par Value—Common Stock 150,000

Preferred Stock, $100 par value, 8%, 3,000 shares authorized and issued 300,000

Retained Earnings 280,000

Treasury Stock (10,000 common shares) 150,000

Paid-in Capital in Excess of Par Value—Preferred Stock 30,000

Prepare in proper form the stockholders’ equity section of the balance sheet.

Answer 1

DORAN CORPORATION
Balance Sheet (Partial)
June 30, 2017
Stockholders’ equity
Paid-in capital
Capital stock
8% preferred stock, $100 par value, 3,000 shares authorized and issued		300000
Common stock, $10 par value, 75,000 shares authorized, 54,000 shares issued, 44,000 shares outstanding		540000
Total capital stock		840000
Additional paid-in capital
In excess of par value—preferred	30000
In excess of par value—common	150000
Total additional paid-in capital		180000
Total paid-in capital		1020000
Retained earnings		280000
Total paid-in capital and retained earnings		1300000
Less: Treasury stock (10,000 shares)		150000
Total stockholders’ equity		1150000