Question

Prom Night Formal Wear has the following stockholders' equity accounts at December 31, 2021: Common Stock, $1 par value, 1,200,000 shares; Additional Paid-in Capital, $21 million; Retained Earnings, $14 million; and Treasury Stock, 50,000 shares, $1.15 million.

Prepare the stockholders' equity section of the balance sheet. (Enter your answers in dollars, not in millions. Amounts to be deducted should be indicated with a minus sign.)

Answer 1

Ans.	Prom Night Formal Wear
	Balance Sheet
	Statement of Stockholder's Equity Section
	For the Year Ended December 31, 2021
	Stockholder's Equity :
	Common stock, $1 par value	$1,200,000
	Additional paid in capital - Common	$21,000,000
	Total paid in capital	$22,200,000
	Retained earnings	$14,000,000
	Less: Treasury stock, 50,000 shares	-$1,150,000
	Total Stockholder's Equity	$35,050,000
	*Common stock = Common shares * Par value
	1,200,000 * $1
	$1,200,000
	*Total Stockholder's Equity   =   Total paid in capital + Retained earnings - Treasury stock