Question

Evan Corporation’ charter authorized the following capital stock: Preferred stock: 8 percent, par $11, authorized 10,000 shares. Common stock: par $2.3, authorized 50,000 shares. Since inception, Skyhawk sold 6,058 shares of the common stock at $3.4per share and 1,845 shares of the preferred stock at $15. The ending retained earnings was $81,790 On the statement of stockholders' equity, the total stockholders' equity would be reported as $_____

Answer 1

Total stockholders' equity = $130,062.20

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Shareholder equity:
Paid - in Capital:
Capital stock:
Preferred Stock    [Par value = 1,845 shares x $11]	$20,295.00
Common stock      [Par value = 6,058 shares x $3.40]	$13,933.40
Total capital stock		$34,228.40
Additional paid-in capital:
Paid-in capital in excess of par - Preferred stock      [1,845 shares x ($15 - $11)]	$7,380.00
Paid-in capital in excess of par - Common stock       [6,058 shares x ($3.40 - $2.30)]	$6,663.80
Total Additional paid-in capital		$14,043.80
Total Paid-In Capital     [Total capital stock + Total additional paid-in capital]		$48,272.20
Retained Earnings		$81,790.00
Total Stockholders' Equity        [$48,272.20 + $81,790]		$130,062.20