Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferra
ID: 2528713 • Letter: S
Question
Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing on July 31, the end of the current year:
1
Common Stock, $36 par
$10,314,000.00
2
Paid-In Capital from Sale of Treasury Stock-Common
355,000.00
3
Paid-In Capital in Excess of Par-Common Stock
2,865,000.00
4
Paid-In Capital in Excess of Par-Preferred Stock
291,900.00
5
Preferred 1% Stock, $150 par
7,297,500.00
6
Retained Earnings
72,106,900.00
7
Treasury Stock-Common
880,000.00
Fifty thousand shares of preferred and 300,000 shares of common stock are authorized. There are 20,000 shares of common stock held as treasury stock.
Prepare the Stockholders’ Equity section of the balance sheet as of July 31, the end of the current year, using Method 1 of
Exhibit 9
. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
1
Common Stock, $36 par
$10,314,000.00
2
Paid-In Capital from Sale of Treasury Stock-Common
355,000.00
3
Paid-In Capital in Excess of Par-Common Stock
2,865,000.00
4
Paid-In Capital in Excess of Par-Preferred Stock
291,900.00
5
Preferred 1% Stock, $150 par
7,297,500.00
6
Retained Earnings
72,106,900.00
7
Treasury Stock-Common
880,000.00
Explanation / Answer
Stockholder's Equity :-
Particulars Amount($) Amount($) Preferred 1% stock, $150 Par 7297500 Add : Paid in Capital in Excess of Par - Preferred Stock 291900 7589400 Common Stock, $36 Par 10314000 Add : Paid in Capital in Excess of Par - Common Stock 2865000 13179000 Less : Sale of Treasury stock common (355000) Total Paid Capital 20413400 Add : Retained Earnings 72106900 Total 92520300 Less : Treasury Common Stock (880000) Total Shareholders Equity 91640300Related Questions
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