“Stockholders’ Equity” section of balance sheet Obj. 6 List the errors in the following “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 Paid-in capital, preferred stock . . . . . . . . . . . . . . . . . . . . . . . $ 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 AppendixLO1