E10-23A. (Learning Objectives 2, 3: Preparing the shareholders’ equity section of a Balance Sheet) Parker Software had the following selected account balances at December 31, 20X6 (in thousands, except par value per share).

Requirements 1. Prepare the shareholders’ equity section of Parker’s Balance Sheet (in thousands).
2. How can Parker have a larger balance of treasury shares than the sum of ordinary shares and Paid-in Capital in Excess of Par?

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Inventory...... Property, plant and equipment, net Paid-in capital in excess of par. Treasury shares, 100 shares at cost... Other shareholders' equity. $ 651 Ordinary share, $0.75 par per share, 800 shares 900 authorized, 320 shares 899 issued........ $ 240 Retained earnings... 2,220 1,150 Accounts receivable, net...... 1,000 (730)* Notes payable 1,100