Stockholders Equity Section of Balance Sheet Specialty Auto Racing Ine. retails

ID: 2600089 • Letter: S

Question

Stockholders Equity Section of Balance Sheet Specialty Auto Racing Ine. 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: Common Stock, $10 par Paid-In Capital from Sale of Treasury $680,000 51,300 Paid-In Capital in Excess of Par-Common Stock Paid-In Capital in Excess of Par-Preferred Stock Preferred 496 Stock, $50 par Retained Earnings Treasury Stock-Common One hundred thousand shares of preferred and 400,000 shares of common stock are authorized. There are 4,500 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 9 204,000 79,500 1,325,000 2,854,600 49,500 Speclalty Auto Racing Inc. Stockholders' Equity 31, 2000X Paid-In Capital: Total Pald-In Capital Total Total Stockholders' Equity

Explanation / Answer

Answer:

Specialty Auto Racing Inc.

Stockholders’ Equity section

Preferred 4 % Stock, $50 par

1325000

Excess of issue price over par

79500

1404500

Common Stock $ 10 par

680,000

Excess of Issue Price over par

204000

884000

From sale of Treasury stock

51300

Total Paid in Capital

2339800

Add: Retained Earnings

2854600

Total

5194400

Less: Treasury Common Stock

-49500

Total Shareholder Equity

5144900