To prepare the “Stockholders’ Equity” section of the balance sheet based on the provided information, we will categorize the common stock, treasury stock, and other relevant components. Here’s the structured layout:
Balance Sheet
Stockholders' Equity
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Common Stock, $30 par value (24,000 shares issued)
- Amount: $720,000
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Paid-In Capital in Excess of Par—Common Stock
- Amount: $144,000
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Paid-In Capital from Sale of Treasury Stock
- Amount: $22,000
-
Total Paid-In Capital
- Calculation: $720,000 + $144,000 + $22,000 = $886,000
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Retained Earnings
- Amount: $403,000
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Less: Treasury Stock (1,000 shares at cost)
- Amount: ($15,000)
Total Stockholders' Equity
- Calculation: Total Paid-In Capital + Retained Earnings - Treasury Stock
- Total: $886,000 + $403,000 - $15,000 = $1,274,000
Finalized Stockholders' Equity Section
Stockholders' Equity
Paid-in capital:
Common Stock, $30 par value $720,000
Paid-In Capital in Excess of Par—Common Stock $144,000
Paid-In Capital from Sale of Treasury Stock $22,000
Total Paid-In Capital $886,000
Retained Earnings $403,000
Less: Treasury Stock ($15,000)
Total Stockholders' Equity $1,274,000
This layout correctly reflects the balances and provides a comprehensive overview of the stockholders' equity section of the balance sheet.
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