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

ID: 2542857 • Letter: S

Question

Stockholders Equity Section of Balance Sheet Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing Inc. on July 31, the end of the current year: Common Stock, $10 par Paid-In Capital from Sale of Treasury Stock-Common 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 4,900 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 8 $680,000 51,300 204,000 87,300 1,455,000 3,022,700 53,900

Explanation / Answer

Specialty Auto Racing Inc

Stockholders' Equity

July 31, 20XX

4% Preferred Stock, Authorized 100,000 shares

Issued and outstanding, 29,100 shares at $50 par

$1,455,000

Paid-in- Capital in excess of par

$87,300

$1,542,300

Common stock , Authorized 400,000 shares

Issued and outstanding, 68,000 at $10 par

$680,000

Paid-in-Capital in excess of par

$204,000

$884,000

Paid-in-Capital Treasury Stock

$51,300

Total Paid-in Capital

$2,477,600

Retained Earnings

$3,022,700

Total

$5,500,300

Treasury Stock - Common

$53,900

Total Stockholders' Equity

$5,446,400