Exercise Problem

1. The following is a summary of all relevant transactions of ABC Corporation since it was organized in 2012. 16,950 shares were authorized and 8,000 shares of common stock ($50 par value) were issued at a price of $60. In 2012, 1,000 shares were issued as a stock dividend when the stock was selling for $68. 300 shares of common stock were bought at a cost of $72 per share. These 300 shares are still in the company treasury. 11,300 preferred shares were authorized and the company issued 5,600 of them ($100 par value) at $120. Some of the preferred stock was reacquired by the company and later reissued for $5,000 more than it cost the company. The corporation has earned a total of $689,300 in net income after income taxes and paid out a total of $353,200 in cash dividends since incorporation.

Prepare the stockholders' equity section of the balance sheet in proper form for ABC Corporation as of December 31, 2012. Account for treasury stock using the cost method.

ABC CORPORATION
Stockholder's Equity
December 31, 2012
Capital Stock
Preferred stock,
$100 par value, 11,300 shares authorized,
5,600 shares issued & outstanding		a
Common stock,
$50 par value, 16,950 shares authorized,
9,000 shares issued;8,700 shares outstanding		b
Total capital stock		c
Additional paid-in capital
Paid-in cap. in exc. of par-common	d
Paid-in cap. in exc. of par-preferred	e
Paid-in cap. from tres. stock-preferred	f
Total paid-in capital		g
Retained earnings		h
Total paid-in cap. & retained earnings
Less: Cost of treasury stock		i
Total stockholders' equity		j