Summit Apparel has the following accounts at December 31: Common Stock, $1 par v
ID: 453747 • Letter: S
Question
Summit Apparel has the following accounts at December 31: Common Stock, $1 par value, 1,400,000 shares issued; Paid-in Capital, $16.60 million; Retained Earnings, $9.60 million; and Treasury Stock, 46,000 shares, $1.012 million.
Prepare the stockholders’ equity section of the balance sheet. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in dollars, not in millions.)
Prepare the stockholders’ equity section of the balance sheet. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in dollars, not in millions.)
Summit Apparel has the following accounts at December 31: Common Stock, $1 par value, 1,400,000 shares issued; Paid-in Capital, $16.60 million; Retained Earnings, $9.60 million; and Treasury Stock, 46,000 shares, $1.012 million. Prepare the stockholders' equity section of the balance sheet. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in dollars, not in millions.) SUMMIT APPAREL Balance Sheet (Stockholders' Equity Section) December 31 Stockholders' equity: Total paid-in capital Total stockholders' equity
Explanation / Answer
Total stockholder's equity is the corporation's equity, that is the financing by owners of the corporation. Stockholder's equity is the sum of the paid-in capital ( or contributed capital) and the retained earnings. Paid-in capital is the taotal amount such as cash and the other assets, received from the stockholders in exchange for the stocks issued by the corporation. Retained earnining are the profit or loss from the operations, a cummulative net income, which is not distributed to the stockholders as dividends. Retained earnings are used for new business development activities or business expansion activities.
Amount assigned per share(par value) $1 Number of common stock shares issued 1400000 Capital Stock(Financing by oweners) $1,400,000 Paid-in capital $ 16,600,000 Retained Earnings $ 9,600,000 Number of treasury stocks 46000 Treasury stock value $ (1,012,000) Stockholder's equity Common stock $1,400,000 Paid-in capital $ 16,600,000 Total Paid-in capital $27,600,000 Retained earnings restricted by treasury stock $ 9,600,000 $ 9,600,000 Treasury stock $ (1,012,000) Total Stock holder's equity $36,188,000Related Questions
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