Question

Using the following accounts and balances, prepare the stockholders' equity section of the balance sheet. Fifty thousand shares of common stock are authorized, and 1,500 shares have been reacquired. Common Stock, $50 par $1,950,000 Paid-In Capital in Excess of Par 162,050 Paid in Capital from Sale of Treasury Stock 6,050 Retained Earnings 117,000 Treasury Stock 4,550 Stockholders' Equity Contributed capital: $ Total contributed capital $ Total $ Treasury stock Total stockholders' equity $

Answer 1

• All working forms part of the answer
• Working

Authorised Shares (A)	50000
Common Stock value (B)	$        19,50,000.00
Par Value (C )	$                       50.00
No. of common stock issued (B/C)	39000
No. of treasury Shares	-1500
No. of outstanding common stock	37500

• Requirement

Stockholder’s Equity section

Contributed Capital:
Common Shares (50000 authorised, 39000 issued and 37500 outstanding, $50 par)	$             19,50,000.00
Paid In Capital in excess of Par	$               1,62,050.00
Paid In Capital from sale of Treasury Stock	$                     6,050.00
Total contributed capital	$             21,18,100.00
Retained Earnings	$               1,17,000.00
Total	$             22,35,100.00
Treasury Stock (1500 shares)	$                   (4,550.00)
Total Stockholders' Equity	$             22,30,550.00