Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing Inc. on July 31, the end of the current year:

1	Common Stock, $37 par	$9,805,000.00
2	Paid-In Capital from Sale of Treasury Stock-Common	327,000.00
3	Paid-In Capital in Excess of Par-Common Stock	2,650,000.00
4	Paid-In Capital in Excess of Par-Preferred Stock	332,500.00
5	Preferred 1% Stock, $150 par	7,125,000.00
6	Retained Earnings	68,366,200.00
7	Treasury Stock-Common	994,400.00

Fifty thousand shares of preferred and 300,000 shares of common stock are authorized. There are 22,600 shares of common stock held as treasury stock.

Prepare the Stockholders Equity section of the balance sheet as of July 31, the end of the current year using Method 1 of

Exhibit 8

. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries.

Accounts and Amount Descriptions

Accounts and Amount Descriptions
Common stock, $37 par (300,000 shares authorized, 265,000 shares issued)
Common stock dividends
Excess over par
From sale of treasury stock
Increase in retained earnings
Preferred 1% stock, $150 par (50,000 shares authorized, 47,500 shares issued)
Paid-in capital, common stock
Paid-in capital, preferred stock
Preferred stock dividends
Retained earnings
Total
Total paid-in capital
Total stockholders equity
Treasury stock

Stockholders Equity

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Prepare the Stockholders Equity section of the balance sheet as of July 31, the end of the current year using Method 1 of

Exhibit 8

. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries.

Score: 67/122

Specialty Auto Racing Inc.

Stockholders Equity

July 31, 20XX

1	Paid-in capital:
2		7,125,000
3		332,500
4			7,457,500
5		9,805,000
6		2,650,000
7			12,455,000
8	From sale of treasury stock		327,000
9	Total paid-in capital
10	Retained earnings			68,366,200
11	Total
12
13	Total stockholders equity