Grace’s Bakery, Inc., has a charter authorizing it to issue 3,000 shares of $40-par-value preferred 8 percent stock and 12,000 shares of no-par common stock (stated value'$25). The following account balances are from the Balance Sheet columns of the work sheet:

Prepare the Stockholders’ Equity section of the balance sheet.

Transcribed Image Text:

Retained Earnings (debit-balance) $ 86,700 Common Stock Subscribed (2,500 shares) 62,500 Discount on Preferred 8 Percent Stock 2,400 Common Stock 150,000 Preferred 8 Percent Stock 60,000 Paid-in Capital in Excess of Stated Value 37,500