5.
Houston Corporation reported its stockholders' equity information for the year 2018 as
follows:
Common stock of $5 par value, 100,000 shares authorized,
50. 000 shares issued and outstanding
$250,000
Additional paid-in capital
125,000
Retained earnings
400,000
Treasury stock 2,500 shares at cost $7
Net income for the year
80,000
Prepare the stockholders' equity section of the balance sheet as it should appear on
December 31, 2018.
