The following accounts appear in the ledger of Sather Inc. after the books are closed at December 31, 2012.

Instructions Prepare the stockholders’ equity section at December 31, assuming $100,000 of retained earnings is restricted for plant expansion. (Use Note R.)

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Common Stock (no-par, $1 stated value, 400,000 shares authorized, 250,000 shares issued) Paid-in Capital in Excess of Stated Value Common Stock Preferred Stock ($50 par value, 8%, 40,000 shares authorized, 14,000 shares issued) Retained Earnings Treasury Stock (9,000 common shares) Paid-in Capital in Excess of Par Value-Preferred Stock $ 250,000 1,200,000 700,000 920,000 64,000 24,000