Balance sheet disclosure of stockholders’ equity (Learning Objective 7)

10–15 min.

Oulette Manufacturing, Co., has the following selected account balances at August 31, 2014.

$160,000 101,000 125,000 Common Stock, no par with

$4 stated value, 40,000 shares authorized, issued, and outstanding .................

Accumulated Depreciation, Machinery and Equipment...

Retained Earnings ...................

$146,000 105,000 200,000 50,000 76,000 Inventory.................................

Machinery and Equipment ......

Preferred Stock, 10%, $25 par, 20,000 shares authorized, 8,000 shares issued and outstanding ........................

Paid-in Capital in Excess of Stated Value—Common.....

Cost of Goods Sold .................

Requirement 1. Prepare the stockholders’ equity section of the company’s balance sheet.

AppendixLO1