Race Car Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances

Question:

Race Car Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Race Car Inc. on April 30, the end of the current year:

, $10 par $ 400,000
Paid-In Capital in Excess of Par- 120,000
Paid-In Capital in Excess of Par-Preferred Stock 90,000
Paid-In Capital from Sale of Treasury Stock-Common 30,000
Preferred 4% Stock, $50 par 1,500,000
Retained Earnings 3,900,000
Treasury Stock-Common 55,000

Fifty thousand shares of preferred and 200,000 shares of common stock are authorized.
There are 5,000 shares of common stock held as treasury stock.
Prepare the Stockholders’ Equity section of the as of April 30, the end of the current year.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...