Question

The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Ayayai Corporation at December 31, 2020.

Common Stock ($4 stated value)		$1,340,000
Paid-in Capital in Excess of Par—Preferred Stock		275,000
Paid-in Capital in Excess of Stated Value—Common Stock		850,000
Preferred Stock (8%, $100 par)		450,000
Retained Earnings		1,000,000
Treasury Stock (10,000 common shares)		120,000

Prepare the stockholders’ equity section of the balance sheet at December 31, 2020.

Answer 1

December 31, 2020
Stockholders' Equity
Paid in capital
Capital Stock
8% Preferred Stock	$4,50,000
Common Stock	$13,40,000
Total Capital Stock		$17,90,000
Additional Paid in capital
In excess of Par - Preferred Stock	$2,75,000
In excess of stated value - Common stock	$8,50,000
Total Additional paid in Capital		$11,25,000
Total Paid in Capital		$29,15,000
Retained Earnings		$10,00,000
Total Paid in Capital and Retained earnings		$39,15,000
Less: Treasury Stock		-$1,20,000
Total Stockholders Equity		$37,95,000