Summit Apparel has the following accounts at December 31: Common Stock, $1 par v

Question

Summit Apparel has the following accounts at December 31: Common Stock, $1 par value, 1,300,000 shares issued, Additional Paid-n Capital, 517.30 million; Retained Earnings, $10.30 million, and Treasury Stock, 53,000 shares, 51.166 million. Prepare the stockholders' equity section of the balance sheet. (Amounts to be deducted should be indicated by a minus sign. Enter your answer in dollars, not millions (ie, $5.5 million sh uld be entered as 5,500,000).) SUMMIT APPAREL Balance Sheet (Stockholders' Equity Section) Stockholders' equity: Additional paid-in capital Common stock S 17,300,000 1,300,000 Total paid-in capital etained earnings reasury stock 18,600,000 10,300,000 1.166,000 Total stockholdars' equity S 30,066,000

Explanation / Answer

1)Treasury stock is deducted from paid in capital .

2)

**treasury stock left after reissuance = 5000 purchased at 28 per share

Any treasury stock reissued more than cost is credited to additional paid incapital 5000 shares reissued at 33 ,so Additional paid in capital = 33-28 =5

common stock 1300000 Additional paid in capital 17300000 Total paid in capital 18600000 Retained earning 10300000 LesS:treasury stock -1166000 27734000

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