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

ID: 2432196 • Letter: U

Question

Using the following accounts and balances, prepare the Stockholders' Equity section of the balance sheet using Method 1 of Exhibit 8. 20,000 shares of common stock authorized, and 2,000 shares have been reacquired. Common Stock, $60 par $960,000 Paid-In Capital from Sale of Treasury Stock 38,000 Paid-In Capital in Excess of Par—Common Stock 304,000 Retained Earnings 518,000 Treasury Stock 18,000

Common Stock, $60 par $960,000 Paid-In Capital from Sale of Treasury Stock 38,000 Paid-In Capital in Excess of Par—Common Stock 304,000 Retained Earnings 518,000 Treasury Stock

Explanation / Answer

Stockholders' Equity

Capital stock Common Stock 960000 Total capital stock 960000 Additional paid in capital Paid-In Capital in Excess of Par—Common Stock 304000 Paid-In Capital from Sale of Treasury Stock 38000 Total paid in capital 1302000 Retained earnings 518000 Total paid in capital and retained earnings 1820000 Less: Treasury stock 18000 Total shareholders' equity 1802000