The following accounts appear in the ledger of Sather Inc. after the books are closed at December 31, 2012.
Common Stock (no-par, $1 stated value, 400,000 shares
authorized, 250,000 shares issued) ...................$ 250,000
Paid-in Capital in Excess of Stated Value—Common Stock .........1,200,000
Preferred Stock ($50 par value, 8%, 40,000 shares authorized,
14,000 shares issued) .........................700,000
Retained Earnings ...........................920,000
Treasury Stock (9,000 common shares) .................64,000
Paid-in Capital in Excess of Par Value—Preferred Stock ..........24,000
Instructions
Prepare the stockholders’ equity section at December 31, assuming $100,000 of retained earnings is restricted for plant expansion. (Use Note R.)