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. 80,000 shares of common stock authorized, and 2,000 shares have been reacquired. Common Stock, $60 par $3,840,000 Paid-In Capital from Sale of Treasury Stock 154,000 Paid-In Capital in Excess of Par—Common Stock 1,408,000 Retained Earnings 2,266,000 Treasury Stock 94,000 Stockholders' Equity Paid-In Capital: $ $ Total Paid-in Capital $ Total $ Total Stockholders' Equity $

Answer 1

Solution:

Balance Sheet (Stockholders' Equity section)
Particulars		Amount
Stockholders' Equity:
Common stock, $60 par (80,000 shares authorized, 64,000shares issued)		$3,840,000.00
Additional Paid in capital:
Additional Paid in capital- Common Stock	$1,408,000.00
Additional Paid in capital- Treasury Stock	$154,000.00
Total additional paid in capital		$1,562,000.00
Total Paid in Capital		$5,402,000.00
Retained Earnings		$2,266,000.00
Total		$7,668,000.00
Less: Treasury stock		$94,000.00
Total Stockholders' equity		$7,574,000.00