Question

The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Eudaley Corporation at December 31, 2017. Common Stock ($6 stated value) $2,028,000 Paid-in Capital in Excess of Par—Preferred Stock 280,000 Paid-in Capital in Excess of Stated Value—Common Stock 851,000 Preferred Stock (8%, $100 par) 550,000 Retained Earnings 1,170,000 Treasury Stock (10,000 common shares) 120,000 Prepare the stockholders’ equity section of the balance sheet at December 31, 2017.

Answer 1

Answer:

$4,709,000

Explanation:

EUDALEY CORPORATION

Balance Sheet as at

December 31, 2017

Stockholders’ equity

Paid-in capital

Capital stock8% Preferred stock, $100 parvalue,

noncumulative, 5,000shares issued $500,000

Common stock, no par, $5stated value, 2,028,000

Total capital stock (500,000+2,028,000) 2,528,000

Additional paid-in capital

In excess of par—preferred stock $280,000

In excess of stated value—common stock 851,000

Total additional paid-in capital(280,000+851,000) 1,131,000

Total paid-in capital(2,528,000+1,131,000) 3,659,000

Retained earnings 1,170,000

Total paid-in capital and retained earnings (3,659,000+1,170,000) 4,829,000

Less: Treasury stock (10,000 commonshares) (120,000)

Total stockholders’ equity

(4,829,000-120,000)

$4,709,000