On December 31, Morgan Company prepared the following stockholders\' equity sect

Question

On December 31, Morgan Company prepared the following stockholders' equity section of its balance sheet. Unfortunately, some errors were made. Morgan CompanyStockholders' EquityDecember 31Common stock, $28 par, 20,000 shares issued and 18,650 shares outstanding $522,200 Paid-in capital in excess of par, common stock 1,121,000 Preferred stock, $25 par, 3,000 shares issued and outstanding 75,000 Paid-in capital in excess of par, preferred stock 24,000 Retained earnings 475,400 Less: Treasury stock, 1,350 shares, purchased at $50 per share 67,500 Paid-in capital in excess of par, treasury stock 41,000 Total stockholders' equity $2,191,100 Required: Revise Morgan Company's stockholders' equity section of its balance sheet for December 31, as appropriate. Note: In the final answer, use "Additional Paid-in Capital" to combine all of the additional Paid-In Capital accounts.

Explanation / Answer

Revision of Morgan Company's stockholders' equity section of its balance sheet for December 31:

Common , $28 par, 20,000 shares issued $560,000 Additional Paid-in Capital-Common Stock: 1,162,000 Paid-in capital in excess of par, common stock 1,121,000 Paid-in capital in excess of par, treasury stock 41,000 Common Stock Capital: 1,722,000 Preferred stock, $25 par, 3,000 shares issued 75,000 Additional Paid-in Capital-Preferred Stock: 24,000 99,000 Retained earnings 475,400 2,296,400 Less: Treasury stock - Common Stock,1,350 shares 67,500 Total Stockholders' Equity $2,228,900

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