Question

Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing on July 31, the end of the current year:

Question not attempted.

1	Common Stock, $37 par	$9,805,000.00
2	Paid-In Capital from Sale of Treasury Stock-Common	327,000.00
3	Paid-In Capital in Excess of Par-Common Stock	2,650,000.00
4	Paid-In Capital in Excess of Par-Preferred Stock	332,500.00
5	Preferred 1% Stock, $150 par	7,125,000.00
6	Retained Earnings	68,366,200.00
7	Treasury Stock-Common	994,400.00

Fifty thousand shares of preferred

A class of stock with preferential rights over common stock.

and 300,000 shares of common stock

The stock outstanding when a corporation has issued only one class of stock.

are authorized. There are 22,600 shares of common stock held as treasury stock

Stock that a corporation has once issued and then reacquires.

. Prepare the Stockholders’ Equity section of the balance sheet as of July 31, the end of the current year, using Method 1

Each class of stock is reported, followed by its related paid-in capital accounts. Retained earnings is then reported followed by a deduction for treasury stock.

of

Exhibit 9

. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Answer 1

Please give positive ratings so I can keep answering. Thanks!

Stockholder's Equity
Paid-In Capital:
Preferred 1% Stock, $150 par
(50,000 shares authorized,
47,500 shares issued)	7,125,000.00
Paid-In Capital in Excess of Par-Preferred Stock	332,500.00	7,457,500.00
Common Stock, $37 par
(300,000 shares authorized,
265,000 shares issued)	9,805,000.00
Paid-In Capital in Excess of Par-Common Stock	2,650,000.00	12,455,000.00
Paid-In Capital from Sale of Treasury Stock-Common		327,000.00
Total Paid-In Capital		20,239,500.00
Retained Earnings		68,366,200.00
Total		88,605,700.00
Less: Treasury Stock-Common
(22,600 shares at cost)		(994,400.00)
Total Stockholder's Equity		87,611,300.00
Calculation of number of shares
Preferred stock value	7,125,000.00	A
Par Value	150.00	B
Number of shares	47,500.00	C=A/B
Common Stock Value	9,805,000.00	D
Par Value	37.00	E
Number of shares	265,000.00	F=D/E