Question

Reporting Stockholders' Equity

Using the following accounts and balances, prepare the Stockholders' Equity section of the balance sheet using Method 1 of Exhibit 8. 40,000 shares of common stock authorized, and 2,000 shares have been reacquired.

Common Stock, $30 par    $960,000

Paid-In Capital from Sale of Treasury Stock 38,000

Paid-In Capital in Excess of Par—Common Stock    256,000

Retained Earnings    557,000

Treasury Stock 24,000

Stockholders' Equity

Paid-In Capital:

Common Stock, $30 Par $960,000

Excess over par _________

Paid-in capital, common stock _________

From Sale of Treasury Stock 38,000   

Total Paid-in Capital    __________

Retained Earnings __________

Total __________

Treasury Stock -24,000

Total Stockholders' Equity ___________

Answer 1

Shareholder's Equity	Amount	Amount
Common Stock, $30 par, 40000 shares are authorized, 32,000 shares issued		$    960,000.00
Paid-In Capital
Excess of Par	$ 256,000.00
From sale of Treasury Stock	$   38,000.00
Total Paid-In Capital		$    294,000.00
Add: Retained Earnings		$    557,000.00
Total		$ 1,811,000.00
Less: Treasury Stock, 2,000 Shares		$     -24,000.00
Total Shareholder's Equity		$ 1,787,000.00