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

10–15 min.

Mackay Manufacturing, Co., has the following selected account balances at January 31, 2014.

$400,000 57,000 123,000 Common Stock, no par with

$8 stated value, 50,000 shares authorized, issued, and outstanding .....

Accumulated Depreciation, Machinery and Equipment...

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

$ 16,000 121,000 120,000 65,000 82,000 Inventory.................................

Machinery and Equipment ......

Preferred Stock, 7%, $12 par, 20,000 shares authorized, 10,000 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