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Stockholders' Equity Section of Balance Sheet Below is the Stockholders' Equity section of the balance sheet prepared as of the end of the current year. Stockholders’ Equity Paid-in capital:     Preferred 2% stock, $80 par (125,000 shares authorized and issued) $10,000,000   Excess of issue price over par 500,000 $10,500,000 Retained earnings   96,700,000 Treasury stock (75,000 shares at cost)   1,755,000 Dividends payable   430,000    Total paid-in capital   $109,385,000 Common stock, $20 par (1,000,000 shares authorized, 825,000 shares issued)   17,655,000 Organizing costs   300,000 Total stockholders' equity   $127,340,000 Prepare a corrected Stockholders' Equity section.   Can you explain how to get the corrected retained earnings number?

Stockholders' Equity Section of Balance Sheet Below is the Stockholders' Equity section of the balance sheet prepared as of the end of the current year. Stockholders’ Equity Paid-in capital:     Preferred 2% stock, $80 par (125,000 shares authorized and issued) $10,000,000   Excess of issue price over par 500,000 $10,500,000 Retained earnings   96,700,000 Treasury stock (75,000 shares at cost)   1,755,000 Dividends payable   430,000    Total paid-in capital   $109,385,000 Common stock, $20 par (1,000,000 shares authorized, 825,000 shares issued)   17,655,000 Organizing costs   300,000 Total stockholders' equity   $127,340,000 Prepare a corrected Stockholders' Equity section.   Can you explain how to get the corrected retained earnings number?

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 5SEA: STOCKHOLDERS EQUITY SECTION After closing its books on December 31, Pro Parts stockholders equity...
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Stockholders' Equity Section of Balance Sheet

Below is the Stockholders' Equity section of the balance sheet prepared as of the end of the current year.

Stockholders’ Equity
Paid-in capital:    
Preferred 2% stock, $80 par (125,000 shares authorized and issued) $10,000,000  
Excess of issue price over par 500,000 $10,500,000
Retained earnings   96,700,000
Treasury stock (75,000 shares at cost)   1,755,000
Dividends payable   430,000
   Total paid-in capital   $109,385,000
Common stock, $20 par (1,000,000 shares authorized, 825,000 shares issued)   17,655,000
Organizing costs   300,000
Total stockholders' equity   $127,340,000

Prepare a corrected Stockholders' Equity section.

 

Can you explain how to get the corrected retained earnings number?

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