Question

The following is a summary of all relevant transactions of Sheridan Corporation since it was organized in 2020. In 2020, 16,100 shares were authorized and 6,600 shares of common stock ($60 par value) were issued at a price of $68. In 2021, 900 shares were issued as a stock dividend when the stock was selling for $69. 330 shares of common stock were bought in 2022 at a cost of $73 per share. These 330 shares are still in the company treasury. In 2021, 10,200 preferred shares were authorized and the company issued 4,800 of them ($100 par value) at $117. Some of the preferred stock was reacquired by the company and later reissued for $4,480 more than it cost the company. The corporation has earned a total of $573,800 in net income after income taxes and paid out a total of $309,700 in cash dividends since incorporation. Prepare the stockholders’ equity section of the balance sheet in proper form for Sheridan Corporation as of December 31, 2022. Account for treasury stock using the cost method. (Enter account name only. Do not provide descriptive information.)

Answer 1

Balance Sheet
Stockholders Equity		Amount in $
Paid in capital
Capital stock
Common stock ( $60 Par Value ) ( 6600*60 + 900*60)		450,000
Preferred Stock ($100 Par Value) ( 4800*100)		480,000
Total Capital Stock		930,000
Additional paid in capital
Paid in capital in excess of par-preferred Stock ( 4800*17)	81,600
Additional paid in capital- Treasury Stock Preferred ( Given )	4,480
Paid in capital in excess of Par value -Common Stock ( 6600*8 + 900*9)	60,900	146,980
Total paid in capital		1,076,980
Retained earnings (573,800 - 309,700 )		264,100
Total paid in capital & retained earnings		1,341,080
Less:Treasury stock-Common ( Given )		-24,090
Total stockholders equity		1,316,990