Below is the Stockholders' Equity section of the balance sheet prepared as of the end of the current year. Prepare a corrected Stockholders' Equity section using Method 1 of Exhibit 7. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. "Deduct" will automatically appear if required. Stockholders' Equity
1 Paid-in capital:
2 Preferred 2% stock, $80 par
3 (125,000 shares authorized and issued) $10,000,000.00
4 Excess of issue price over par 500,000.00 $10,500,000.00
5 Retained earnings 96,700,000.00
6 Treasury stock (75,000 shares at cost) 1,755,000.00
7 Dividends payable 430,000.00
8 Total paid-in capital $109,385,000.00
9 Common stock, $20 par
10 (1,000,000 shares authorized, 825,000 shares issued) 17,655,000.00
11 Organizing costs 300,000.00
12 Total stockholders' equity $127,340,000.00
X Accounts and Amount Descriptions Accounts and Amount Descriptions Common stock, $20 par; 1,000,000 shares authorized, 825,000 issued Decrease in retained earnings Dividends payable Excess of issue price over par Increase in retained earnings Organizing costs Preferred 2% stock, $80 par; 125,000 shares authorized and issued Retained earnings Total Total paid-in capital Total stockholders' equity Treasury stock; 75,000 shares at cost X Stockholders' Equity Prepare a corrected Stockholders' Equity section using Method 1 of Exhibit 7. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. "Deduct" will automatically appear if required. Stockholders' Equity 1 Paid-in capital: 2 3 4 5 6 7 8 9 10
Prepare a corrected Stockholders' Equity section using Method 1 of
Exhibit 7
. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. "Deduct" will automatically appear if required.