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, $32 par $8,880,000.00 2 Paid-In Capital from Sale of Treasury Stock-Common 348,000.00 3 Paid-In Capital in Excess of Par-Common Stock 2,497,500.00 4 Paid-In Capital in Excess of Par-Preferred Stock 489,000.00 5 Preferred 1% Stock, $150 par 7,335,000.00 6 Retained Earnings 72,425,500.00 7 Treasury Stock-Common 1,044,900.00 Fifty thousand shares of preferred and 300,000 shares of common stock are authorized. There are 24,300 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 ofExhibit 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 Common stock, $32 par (300,000 shares authorized, 277,500 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, 48,900 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
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, $32 par $8,880,000.00 2 Paid-In Capital from Sale of Treasury Stock-Common 348,000.00 3 Paid-In Capital in Excess of Par-Common Stock 2,497,500.00 4 Paid-In Capital in Excess of Par-Preferred Stock 489,000.00 5 Preferred 1% Stock, $150 par 7,335,000.00 6 Retained Earnings 72,425,500.00 7 Treasury Stock-Common 1,044,900.00 Fifty thousand shares of preferred and 300,000 shares of common stock are authorized. There are 24,300 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 ofExhibit 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 Common stock, $32 par (300,000 shares authorized, 277,500 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, 48,900 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
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter8: Liabilities And Stockholders' Equity
Section: Chapter Questions
Problem 8.24E
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Question
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, $32 par
|
$8,880,000.00
|
2
|
Paid-In Capital from Sale of
|
348,000.00
|
3
|
Paid-In Capital in Excess of Par-Common Stock
|
2,497,500.00
|
4
|
Paid-In Capital in Excess of Par-
|
489,000.00
|
5
|
Preferred 1% Stock, $150 par
|
7,335,000.00
|
6
|
|
72,425,500.00
|
7
|
Treasury Stock-Common
|
1,044,900.00
|
Fifty thousand shares of preferred and 300,000 shares of common stock are authorized. There are 24,300 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 ofExhibit 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
|
|
Common stock, $32 par (300,000 shares authorized, 277,500 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, 48,900 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 |
Expert Solution
Step 1
Total Shareholders' Equity section of the balance sheet includes all the outstanding share capital less treasury stock, add retained earnings and adding paid-in capital in excess of par capital.
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