PREPARE THE STOCKHOLDERS’ EQUITY SECTION Wildcat Drilling has the following accounts on its trial balance.

Debit Credit Retained earnings 1,500,000 Cash 125,000 Paid-in capital in excess of par—common 10,000,000 Paid-in capital in excess of par—preferred 2,000,000 Accounts payable 75,000 Accounts receivable 150,000 Common stock, $2 par 800,000 Preferred stock, $10 par 600,000 Inventory 500,000 Treasury stock—common (40,000 shares) 250,000 Accumulated other comprehensive income 50,000 Required:

Prepare the stockholders’ equity portion of Wildcat’s balance sheet.

Exercise