The following accounts appear in the ledger of Rosswell Inc. after the books are
ID: 2384711 • Letter: T
Question
The following accounts appear in the ledger of Rosswell Inc. after the books are closed at December 31, 2010.Common Stock (no-par, $1 stated value, 400,000 shares
authorized, 250,000 shares issued) $250,000
Paid-in Capital in Excess of Stated Value — Common Stock 1,200,000
Preferred Stock ($50 par value, 8%, 40,000 shares authorized,
12,000 shares issued) 600,000
Retained Earnings 700,000
Treasury Stock (10,000 common shares) 64,000
Paid-in Capital in Excess of Par Value — Preferred Stock 24,000
Explanation / Answer
Stockholders Equity
8% Preferred stock
40,000 shares authorized
12,000 sharesissued 600,000
Common stock
400,000 shares authorized
200,000 shares issued
190,000outstanding 200,000
Total Capitalstock 800,000
Additional paid -in -capital
In excess of par preferredstock 24,000
In excess of par commonstock 1,200,000
Total additional paid incapital 1,224,000
Total paid in capital 2,024,000
Retained earnings see note R 900,000
Total paid in capital and Retained earnings 4,148,000
Less
Treasury stock
10,000 common shares 64,000
Total stockholders equity 4,084,000