PROBLEM 2 (10 points) The ledger of Marquina Corporation contains the following
ID: 2437493 • Letter: P
Question
PROBLEM 2 (10 points) The ledger of Marquina Corporation contains the following stockholders' equity accounts at December 31, 2017 540,000 410,000 500,000 Preferred Stock (8%, $30 par, noncumulative) Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Common Stock ($10 stated value) Retained Eamings Treasury Stock -Common (9,000 shares) 950,000 800,000 288,000 Instructions: Prepare the stockholders' equity section of the balance sheet at December 31, 2017 assuming that the number of authorized common stock shares is 120,000 and the number of authorized preferred shares is 40,000. Note: Write clearly and use proper labels /do not abbreviate). To earn full credit, you appropriate levels for each shown amount MARQUINA CORPORATION Balance Sheet (Partial) December 31, 2017 STOCKHOLDERS EQUITYExplanation / Answer
Solution:
MARQUINA CORPORATION
BALANCE SHEET (PARTIAL) DECEMBER 2017
STOCK HOLDERS EQUITY
Particulars Amount($)
(A): Common Stock (10 stated value) 9,50,000
(B): Prefered Stock (8%,30 par value,Non-Cumulative) 5,40,000
(C): Common Stock - Paid in capital in excess of par 5,00,000
(D): Preferred Stock – Paid in capital in excess of par 4,10,000
(E) : Retained Earnings 8,00,000
(f): Less : Treasury Stock(-)Common Stock(9,000 shares) 2,88,000
(G): Total stock holders Equity(A+B+C+D+E-F) 29,12,000
NOTE POINTS:
*Preferred Stock (or)Authorized common stock is Irrelevant for this Purpose.
*Both Common Stock & Preferred Stock issued only to be considered.
*Retained Earnings & Par value also to be considered for this purpose.
*Treasury Stock is to be Deducted from the above explained 3 points.
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