Question

specialty auto racing inc. retails racing products BMW, porsches,and ferraris. tge following accounts and their balances appear in the ledger of specialty auto racing Inc om July 31 the end of the current year: common stock,$36 par $10,080,000
paid in capital from sale of treasury sick-common$340,000
paid in capital in excess of par-common stock:420,000
paid in capital in excess of par-preferred stock:384,000
preferred 1% stock,$150 par $7,200,000
retained earnings $71,684,000
treasury stock-common $1,008,000
fifty thousand shares of preferred and 300,000 shares of common stock are authorized. there are 24,000 shares of common stock held as treasury stock.
prepare the stockholders equity section of the balance sheet as if July 31 the end of the current year using method 1 of exhibit 8.

Answer 1

STOCKHOLDERS' EQUITY SECTION
Paid in capital:
Preferred 1% stock, $150 par, 50000 shares authorized, 48000 shares issued.	7200000
Paid in capital in excess of par	384000	7584000
Common stock, $36 par, 300000 shares authorized, 280000 shares issued.	10080000
Paid in capital in excess of par	420000	10500000
Paid in capital from sale of treasury stock		340000
Total paid in capital			18424000
Retained earnings			71684000
Total			90108000
Less: Treasury stock, Common stock (24000 shares)			1008000
Total stockholders' equity			89100000