Question

The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Eudaley Corporation at December 31, 2017.

Common Stock ($5 stated value).....................................................................$1,500,000

Paid-in Capital in Excess of Par—Preferred Stock...........................................280,000

Paid-in Capital in Excess of Stated Value—Common Stock........................900,000

Preferred Stock (8%, $100 par)...............................................................................500,000

Retained Earnings.....................................................................................................1,234,000

Treasury Stock (10,000 common shares).............................................................120,000

Instructions

Prepare the stockholders’ equity section of the balance sheetat December 31, 2017.

Answer 1

EUDALEY CORPORATION
Partial Balance Sheet
December 31, 2017
Stockholders Equity
Paid-in capital
Capital stock
8% Preferred stock, $100 par value		$ 500,000
Common stock, no par, $5 stated value		$ 1,500,000
Total capital stock		$ 2,000,000
Additional paid-in capital
In excess of par—preferred stock	$ 280,000
In excess of stated value—common stock	$ 900,000
Total additional paid-in capital		$ 1,180,000
Total paid-in capital		$ 3,180,000
Retained earnings		$ 1,234,000
Total paid-in capital and retained earnings		$ 4,414,000
Less: Treasury stock (10,000 common shares)		$ (120,000)
Total stockholders’ equity		$ 4,294,000

EUDALEY CORPORATION
Partial Balance Sheet
December 31, 2017
Stockholders Equity
Paid-in capital
Capital stock
8% Preferred stock, $100 par value		$ 500,000
Common stock, no par, $5 stated value		$ 1,500,000
Total capital stock		$ 2,000,000