Question

Prepare a stockholder's equity section of the balance sheet by using the following information:

1. Studley Inc. was organized and authorized to issue 10,000 shares of $100 par value, 5% percent preferred stock, and 150,000 shares of $1 par value common stock on September 1st, 2019

a.       Issued 2,000 shares of preferred stock

b.   APIC – preferred 15,000

c.       Issued 58,000 shares of common stock

d.       APIC - Common 154,000

e. APIC - Treasury 15,750

e.       Had 3,000 shares of treasury stock at a cost of 39,000

f.        Retained earnings had a balance of 16,500

Answer 1

Solution:
		Stockholder's Equity
		Paid in Capital :
		Common Shares ,Par value $ 1, Authorized 150,000 Shares, Issued and outstanding 58,000 Shares	$                         58,000
		Addittional Paid in Capital - Common Stock	$                      154,000
		5% Preferred Shares ,Par value $ 100, Authorized 10,000 Shares, Issued and outstanding 2,000 Shares	$                      200,000
		Addittioanl Paid in Capital - Preferred Stock	$                         15,000
		Paid in Capital in excess of par value - Treasury Stock	$                         15,750
		Total Paid in Capital	$                      442,750
		Add: Retained Earnings	$                         16,500
		Total	$                      459,250
		Less: Treasury Stock	$                         39,000
		Total Shareholder's Equity	$                      420,250