Below is the Stockholders' Equity section of the balance sheet prepared as of the end of the current year.

Prepare a corrected Stockholders Equity section using Method 1 of

Exhibit 7

. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. Deduct will automatically appear if required.

Stockholders Equity

1	Paid-in capital:
2	Preferred 2% stock, $80 par
3	(125,000 shares authorized and issued)	$10,000,000.00
4	Excess of issue price over par	500,000.00	$10,500,000.00
5	Retained earnings		96,700,000.00
6	Treasury stock (75,000 shares at cost)		1,755,000.00
7	Dividends payable		430,000.00
8	Total paid-in capital		$109,385,000.00
9	Common stock, $20 par
10	(1,000,000 shares authorized, 825,000 shares issued)		17,655,000.00
11	Organizing costs		300,000.00
12	Total stockholders equity		$127,340,000.00

EXHIBIT 4 Sources of Stockholders' Equity Stockholders Equity Paid-In Capital Retained Earnings Reinvested Stockholder investments earnings A Stockholders' Equity section of a balance sheet follows:3 Stockholders' Equity Paid-in capital: Common stock Retained earnings $330,000 80,000 Total stockholders'equity $410,000 The reporting of stockholders'equity is further discussed and illustrated later in this chapter