Question

list the errors the following stockholders equity section of the balance sheet prepared as of the end of the current year:
paid in capital:
preferred 2% stock,$80 par(125,000 shares authorized and issued $10,000,000
excess of issue price over par 500,000-10,500,000
retaining earnings $96,700,000
treasury stock(75,000 shares to cost)-1,755,000
dividends payable 430,000
total paid in capital $109,385,000
common stock $20 par (1,000,000 shares authorized, 825,000 shares issued - $17,655,000
organizing costs 300,000
total stockholders equity $127,340,000

Answer 1

Stockholders' equity			Working
Paid in capital
Capital stock
Preferred Stock (2%, $80 par, 125,000 authorized and fully issued)		$    10,000,000
Common stock ($20 par value, 1,000,000 authorized and 825,000 issued)		$    16,500,000	825,000*$20
Total capital stock		$    26,500,000
Additional paid in capital
In excess of par value - preferred stock	$     500,000
In excess of par value - common stock	$ 1,155,000		$17,655,000 - $16,500,000
Total additional paid in capital		$       1,655,000
Total paid in capital		$    28,155,000
Retained earnings		$    96,400,000	$96,700,000-$300,000
Total paid in capital and retained earnings		$ 124,555,000
Less: Treasury stock (75,000 common shares)		$    (1,755,000)
Total stockholders' equity		$ 122,800,000