Prepare the stockholders\' equity section of the balance sheet at December 31,20
ID: 2578706 • Letter: P
Question
Prepare the stockholders' equity section of the balance sheet at December 31,2014. E11-10 The followinguts appear in the ledger of Polzin Inc ater the books are Pue closed at December 31, 2014. Common Stock (no-par, $1 stated value, 400,000 shares equity section. (LO 7), AP authorized, 250,000 shares issued) Paid-in Capital in Excess of Stated Value-Common Stock Preferred Stock ($50 par value, 8%, 40,000 shares authorized, $ 250,000 1200,000 14,000 shares issued) Retained Earnings Treasury Stock (9,000 common shares) Paid-in Capital in Excess of Par Value-Preferred Stock 700,000 920,000 64,000 24,000Explanation / Answer
Stockhoders' equity section of the balance sheet will be prepared as follows:
Dividends will not be deducted here because dividends are adjusted in the retained earnings. The balance of retained earnings shown here is after the adjustment of dividends paid during the year.
Polzin Inc. Balance Sheet (Partial) December 31, 2014 Stocholders' Equity Paid-in Capital: Preferred stock ($50 par value, 8%, 40,000 shares authorized, 14,000 shares issued) 700000 Common stock (No par, $1 stated value, 400,000 shares authorized, 250,000 shares issued) 250000 Paid-in capital in excess of par value - preferred stock 24000 Paid-in capital in excess of stated value - common stock 1200000 Total paid-in capital 2174000 Retained earnings 920000 Total paid-in capital and retained eanrings 3094000 Treasury stock (9,000 common shares) -64000 Total stockholders' equity 3030000