Question

Reporting Stockholders' Equity

Using the following accounts and balances, prepare the Stockholders' Equity of the balance sheet. There are 80,000 shares of common stock authorized, and 10,000 shares have been reacquired.

Common Stock, $40 par $2,240,000

Paid-in Capital from Sale of Treasury Stock    45,000

Paid-In Capital in Excess of Par-Common stock 504,000

Retained Earnings    1,165,000

Treasury Stock 26,000

Answer 1

Stockholder's Equity
Common Stock [56000 shares issued, 46000 shares outstanding]	$2,240,000
Paid in Capital in Excess of Par Common Stock	$504,000
Paid in Capital from Sale of Treasury Stock	$45,000
Total Paid in Capital		$2,789,000
Retained earnings		$1,165,000
Total Paid in Capital & Retained earnings		$3,954,000
Less: Treasury Stock [10000 shares x $ 2.60]		$26,000
Total Stockholder's Equity		$3,928,000