PE 13-6A Reporting stockholders’ equity

Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet. Two hundred fifty thousand shares of common stock are authorized, and 17,500 shares have been reacquired.


Common Stock, $60 par $12,000,0000
Paid-In Capital from Sale of Treasury Stock 320,000
Paid-In Capital in Excess of Par—Common Stock 3,200,000
Retained Earnings 18,500,000
Treasury Stock 1,137,500





Answer:

Stockholders’ Equity
Paid-in capital:
Common stock, $60 par (250,000 shares
authorized, 200,000 shares issued) $12,000,000
Excess of issue price over par 3,200,000 $15,200,000
From sale of treasury stock 320,000
Total paid-in capital $15,520,000
Retained earnings 18,500,000
Total $34,020,000
Deduct treasury stock (17,500 shares at cost) 1,137,500
Total stockholders’ equity $32,882,500