Stockholders' Equity Section of Balance Sheet Below is the Stockholders' Equity section of the balance sheet prepared as of the end of the current year. Stockholders’ Equity Paid-in capital: Preferred 2% stock, $80 par (125,000 shares authorized and issued) $10,000,000 Excess of issue price over par 500,000 $10,500,000 Retained earnings 96,700,000 Treasury stock (75,000 shares at cost) 1,755,000 Dividends payable 430,000 Total paid-in capital $109,385,000 Common stock, $20 par (1,000,000 shares authorized, 825,000 shares issued) 17,655,000 Organizing costs 300,000 Total stockholders' equity $127,340,000 Prepare a corrected Stockholders' Equity section. Can you explain how to get the corrected retained earnings number?
Stockholders' Equity Section of Balance Sheet Below is the Stockholders' Equity section of the balance sheet prepared as of the end of the current year. Stockholders’ Equity Paid-in capital: Preferred 2% stock, $80 par (125,000 shares authorized and issued) $10,000,000 Excess of issue price over par 500,000 $10,500,000 Retained earnings 96,700,000 Treasury stock (75,000 shares at cost) 1,755,000 Dividends payable 430,000 Total paid-in capital $109,385,000 Common stock, $20 par (1,000,000 shares authorized, 825,000 shares issued) 17,655,000 Organizing costs 300,000 Total stockholders' equity $127,340,000 Prepare a corrected Stockholders' Equity section. Can you explain how to get the corrected retained earnings number?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Below is the Stockholders' Equity section of the balance sheet prepared as of the end of the current year.
| Stockholders’ Equity | ||
| Paid-in capital: | ||
| $10,000,000 | ||
| Excess of issue price over par | 500,000 | $10,500,000 |
| 96,700,000 | ||
| 1,755,000 | ||
| Dividends payable | 430,000 | |
| Total paid-in capital | $109,385,000 | |
| Common stock, $20 par (1,000,000 shares authorized, 825,000 shares issued) | 17,655,000 | |
| Organizing costs | 300,000 | |
| Total stockholders' equity | $127,340,000 |
Prepare a corrected Stockholders' Equity section.
Can you explain how to get the corrected retained earnings number?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education