Question

The following selected list of accounts with their normal balances was taken from the general ledger of Windsor Company as of December 31, 2013: Common stock, $1 par Winsor $ 190,000 Retained earnings 131,000 Paid-in capital in excess of par - preferred 35,000 Treasury Stock 165,000 Preferred stock, $100 par 300,000 Paid-in capital in excess of par -common 380,000 Given above information, at the end of 2013:

Select one:

A. Total Paid in Capital is $1,070,000, and Total Stockholders' equity is $1,201,000

B. Total Paid in Capital is $740,000, and Total Stockholders' equity is $609,000

C. Total Paid in Capital is $905,000, and Total Stockholders' equity is $871,000

D. Total Paid in Capital is $740,000, and Total Stockholders' equity is $871,000

Answer 1

The correct answer is option (C) i.e. Total Paid in Capital is $905,000, and Total Stockholders' equity is $871,000
Windsor Company
Partial Balance Sheet
December 31,2013
Stockholders’ equity
Paid-in capital
Capital stock
Preferred stock		300,000
Common stock		190,000
Total capital stock		490,000
Additional paid in capital
Paid-in capital In excess of par—preferred stock	35,000
Paid-in capital In excess of stated value—common stock	380,000
Total additional paid-in capital		415,000
Total paid-in capital		905,000
Retained earnings		131,000
Total paid-in capital and retained earnings		1,036,000
Less: Treasury stock		(165,000)
Total stockholders’ equity		871,000