The following accounts and their balances appear in the ledgerof Heart and Saul
ID: 2457684 • Letter: T
Question
The following accounts and their balances appear in the ledgerof Heart and Saul Inc. on April 30 of the current year:
Common Stock, $50par 900,000
Paid-In Capital in Excess ofPar 110,000
Paid-In Capital from Sale of TreasuryStock 42,000
RetainedEarnings 3,178,000
TreasuryStock 210,000
Prepare the Stockholders’ Equity section of thebalance sheet as of April 30. Twenty-five thousand shares ofcommon stock are authorized, and 3,500 shares have beenreacquired.
(Text states, Total Stockholders’ equity,$4,020,000)
Explanation / Answer
Heart and Saul Inc. Balance sheet April 30, current year Stockholders' Equity Contributed Capital Common stock , $ 50 Par 25,000 shares authorized ,21,500 shares issued, 18,000outstanding 900,000 Addition paid incapital 110,000 Total contributedcapital 1,010,000 RetainedEarnings 3,178,000 Total contributed capital and retainedearnings 4,188,000 Less Treasury stock (3,500 shares at cost) (210,000) + Paid in capital from sale of T.stock 42,000 Total stockholders' Equity 4,020,000