Question

1. Presented below are selected accounts of Romans Corp for the current year, 2020:

Common stock, $1 par	250,000
Preferred stock, $25 par	1,250,000
APIC-Common stock	500,000
APIC-Preferred stock	600,000
Retained earnings	113,000
Treasury stock	350,000

There were 100,000 shares of preferred stock authorized, and 1 million shares of common stock authorized.

Prepare the stockholders equity section of a classified balance sheet in good format as of December 31, 2020. Make sure you show the amount of shares issued in proper format

Answer 1

Answer
Stockholders' Section of Jones Classified Balance Sheet
	Amount	Amount
Capital stock:
Preferred stock ($25 par value), 100,000 preferred stock authorized, issued and outstanding (50,000 share)	$12,50,000
Common stock ($1 par value), 1 million common stock authorized, 250000 share issued and Outstanding	$ 2,50,000
Total capital stock		$15,00,000
Additional paid-in capital:
Paid-in Capital in Excess of Par Value-Preferred Stock	$ 6,00,000
Paid-in Capital in Excess of Stated Value-Common Stock	$ 5,00,000
Total paid-in capital		$11,00,000
Retained earnings		$ 1,13,000
Total paid-in capital and retained earnings		$ 27,13,000
Less: Treasury stock		$ -3,50,000
Total stockholders' equity		$23,63,000