Question

Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries.

Five-hundred thousand shares of common stock are authorized, and 40,000 shares have been reacquired.

Common Stock, $120 par $48,000,000
Paid-In Capital from Sale of Treasury Stock 4,500,000
Paid-In Capital in Excess of Par—Common Stock 6,400,000
Retained Earnings 63,680,000
Treasury Stock 5,200,000

Accounts and Amount Descriptions

Common stock, $60 par (500,000 shares authorized, 360,000 shares issued)
Common stock, $120 par (500,000 shares authorized, 400,000 shares issued)
Dividends on common stock
Excess of issue price over par
From sale of treasury stock
Issuance of additional common stock
Net income
Purchase of treasury stock
Retained earnings
Total
Total paid-in capital
Total stockholders’ equity
Treasury stock (40,000 shares at cost)

Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries.

Answer 1

Answer:

Explanation:

Stockholder's Equity

Paid in Capital:  

      Common Stock  $48,000,000

     Paid in Capital in excess of Par - Common Stock $6,400,000  

     Paid in Capital from sale of Treasury Stock $4,500,000

[58,900,000]

Total Paid in Capital  $58,900,000

Retained earnings  $63,680,000

Total Paid in Capital & Retained Earnings  $122,580,000

Deduct: Treasury Stock  $5,200,000

Total Stockholder's Equity  $117,380,000