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:

Common Stock, $37 par. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,805,00000

Paid-In Capital from Sale of Treasury Stock ”Common. . . . . . . . . 327,00000

PaidIn Capital in Excess of ParCommon Stock . . . . . . . . . . . . . . . . . 2,650,00000

PaidIn Capital in Excess of ParPreferred Stock . . . . . . . . . . . . . . . . .332,50000

Preferred 1 Stock, $150 par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,125,00000

Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,366,200

Treasury Stock ”Common . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,008,000

Fifty thousand shares of preferred and 300,000 shares of common stock are authorized.

There are 24,000 shares of common stock held as treasury stock.

Prepare the Stockholder Equity section of the balance sheet as of July 31, the end of the current year using Method 1 of Exhibit4.

 

Telex Inc. Balance Sheet December 31, 2014 Stockholders'Equity Paid-in capital: Preferred 10% stock, $50 par (2,000 shares authorized and issued).. Excess of issue price over par . $100,000 10,000 $ 110,000 Common stock, $20 par (50,000 shares authorized, 45,000 shares issued). Excess of issue price over par .. $900,000 190,000 1,090,000 From sale of treasury stock. Total paid-in capital.. Retained earnings.. Total 2,000 $1,202,000 350,000 $1,552,000 Deduct treasury stock (600 shares at cost). Total stockholders' equity. 27,000 $1,525,000