Question

Reporting Stockholders' Equity

Using the following accounts and balances, prepare the Stockholders' Equity section of the balance sheet using Method 1 of Exhibit 8. 100,000 shares of common stock authorized, and 10,000 shares have been reacquired.

Common Stock, $50 par	$3,500,000
Paid-In Capital from Sale of Treasury Stock	70,000
Paid-In Capital in Excess of Par—Common Stock	630,000
Retained Earnings	1,855,000
Treasury Stock	32,000

Stockholders' Equity
Paid-In Capital:
Common Stock, $50 Par	$
		$
Total Paid-in Capital		$
Total		$
Total Stockholders' Equity		$

Answer 1

Solution:
	STOCKHOLDER'S EQUITY
	Paid In Capital
	Common Stock ($ 50 Par)		$        35,00,000
	Total Paid in Capital		$        35,00,000
	Addittional Paid in Capital :
	Paid in capital in excess of Par value - Common stock	$          6,30,000
	From Treasury Stock	$             70,000
			$           7,00,000
	Total Contributed Capital		$        42,00,000
	Retained Earnings		$        18,55,000
	Total		$        60,55,000
	Less: Treasurry Stock		$              32,000
	Total Stockholder's Equity		$        60,23,000