OBLEM 6 (15 points) following stockholders\' equity accounts, arranged alphabeti

ID: 2401999 • Letter: O

Question

OBLEM 6 (15 points) following stockholders' equity accounts, arranged alphabetically, are in the ledger of Best Deal Inc. at December 31, 2017. Retained Earnings Common Stock ($25 stated value) Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Preferred Stock (996, $40 par, noncumulative) Treasury Stock-Common, costing $13 per share $ 750,000 950,000 280,000 550,000 380,000 117,000 nstructions: Prepare the stockholders' equity section of the balance sheet at December 31, 2017 assuming that the umber of authorized common stock shares is 55,000 and the number of authorized preferred shares is 50,000. ote: Write clearly and use proper labels [do not abbreviate]. To earn full credit, you must write down the ppropriate levels for each shown amount.

Explanation / Answer

Answer:

Best deal inc

balance sheet (partial)

Stockholders’ equity

Paid-in capital

Capital stock

9% Preferred stock, $40 par value, noncumulative, 50,000 authorized and 9500shares issued and outstanding

380,000

Common stock, no par, $25 stated value,55,000 authorized and 47,000 shares issued, and 38,000 outstanding

950,000

Total capital stock

1,330,000

Additional paid-in capital

In excess of par—preferred stock

280,000

In excess of stated value—common stock

550,000

Total additional paid-in capital

830,000

Total paid-in capital

2,160,000

Retained Earnings

750,000

Total paid-in capital and retained earnings

2,910,000

Less: Treasury stock (9,000 common shares)

117000

Total stockholders’ equity

2,793,000