Question

Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing on July 31, the end of the current year:

1	Common Stock, $34 par	$9,418,000.00
2	Paid-In Capital from Sale of Treasury Stock-Common	359,000.00
3	Paid-In Capital in Excess of Par-Common Stock	1,939,000.00
4	Paid-In Capital in Excess of Par-Preferred Stock	284,700.00
5	Preferred 1% Stock, $150 par	7,117,500.00
6	Retained Earnings	76,839,200.00
7	Treasury Stock-Common	860,000.00

Fifty thousand shares of preferred and 300,000 shares of common stock are authorized. There are 20,000 shares of common stock held as treasury stock.

Prepare the Stockholders’ Equity section of the balance sheet as of July 31, the end of the current year, using Method 1 of

Exhibit 9

. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Answer 1

Prepare the Stockholders’ Equity section of the balance sheet as of July 31, the end of the current year

Paid in capital
Common Stock	9418000
Paid-In Capital in Excess of Par-Common Stock	1939000	11357000
Preferred 1% Stock, $150 par	7117500
Paid-In Capital in Excess of Par-Preferred Stock	284700	7402200
Paid-In Capital from Sale of Treasury Stock-Common		359000
Total Paid in capital		19118200
Retained earnings		76839200
Total		95957400
Less: Treasury stock		-860000
Total Stockholder's equity		95097400