Using the following accounts and balances, prepare the Stockholder\'s Equity sec

Question

Using the following accounts and balances, prepare the Stockholder's Equity section of the balance sheet. Fifty thousand shares of common stock are authorized, and 5,000 shares have been reacquired. .

Common Stock, $50.00 par                        $1,500,000

Paid-In Capital in Excess of Par                        250,000

Paid in Capital from Sale of Treasury Sock            42,000

Retained Earnings                                        4,350,000

Treasury Stock                                              155,000

Explanation / Answer

Hi,

Please find the answer as follows:

Common Stock (500000*50) = 25000000

Paid-In Capital in Excess of Par = 250000

Paid in Capital from Sale of Treasury Stock = 42000

Total Paid in Capital = 2592000

Retained Earnings = 4350000

Treasury Stock = 155000

Less Treasury Stock = 155000

Total Stockholder's Equity 29487000

Thanks.

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