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 on July 31, the end of the current year Common stock, $36 par $10,100,00 Paid-In Capital from Sale of Treasury Stock—Common 340,000 Paid-In Capital in Excess of Par—Common Stock 420,000 Paid-In Capital in Excess of Par—Preferred Stock 369,000 Preferred 1% Stock, $150 par 7,200,000 Retained Earnings 71,684,000 Treasury Stock - Common 1,010,000 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 Stockholders’ Equity section of the balance sheet as of July 31, the end of the current year, using Method 1 of Exhibit 9 on page 577.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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  1. 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 on July 31, the end of the current year

Common stock, $36 par

$10,100,00

Paid-In Capital from Sale of Treasury Stock—Common

340,000

Paid-In Capital in Excess of Par—Common Stock

420,000

Paid-In Capital in Excess of Par—Preferred Stock

369,000

Preferred 1% Stock, $150 par

7,200,000

Retained Earnings

71,684,000

Treasury Stock - Common

1,010,000

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 Stockholders’ Equity section of the balance sheet as of July 31, the end of the current year, using Method 1 of Exhibit 9 on page 577.

EXHIBIT 8
Stockholders' Equity Section of a Balance Sheet
Telex Inc.
Balance Sheet
December 31, 20Y7
Stockholders' Equity
Paid-in capital:
Preferred 10% stock, $50 par (2,000 shares authorized and
issued).
$100,000
Excess over par
10,000
Paid-in capital, preferred stock
$ 110,000
Common stock, $20 par (50,000 shares authorized,
45,000 shares issued)..
$900,000
Excess over par
190,000
Method 1
Paid-in capital, common stock..
1,090,000
From sale of treasury stock
2,000
Total paid-in capital
Retained earnings...
$1,202,000
350,000
Treasury stock (600 shares at cost).
Total stockholders' equity...
(27,000)
$1,525,000
Stockholders'Equity
Contributed capital:
Preferred 10% stock, $50 par (2,000 shares authorized and
issued).....
$ 100,000
Common stock, $20 par (50,000 shares authorized,
45,000 shares issued)
900,000
Method 2
Additional paid-in capital
Total contributed capital.
202,000
$1,202,000
Retained earnings...
350,000
Treasury stock (600 shares at cost).
Total stockholders'equity....
(27,000)
$1,525,000
Transcribed Image Text:EXHIBIT 8 Stockholders' Equity Section of a Balance Sheet Telex Inc. Balance Sheet December 31, 20Y7 Stockholders' Equity Paid-in capital: Preferred 10% stock, $50 par (2,000 shares authorized and issued). $100,000 Excess over par 10,000 Paid-in capital, preferred stock $ 110,000 Common stock, $20 par (50,000 shares authorized, 45,000 shares issued).. $900,000 Excess over par 190,000 Method 1 Paid-in capital, common stock.. 1,090,000 From sale of treasury stock 2,000 Total paid-in capital Retained earnings... $1,202,000 350,000 Treasury stock (600 shares at cost). Total stockholders' equity... (27,000) $1,525,000 Stockholders'Equity Contributed capital: Preferred 10% stock, $50 par (2,000 shares authorized and issued)..... $ 100,000 Common stock, $20 par (50,000 shares authorized, 45,000 shares issued) 900,000 Method 2 Additional paid-in capital Total contributed capital. 202,000 $1,202,000 Retained earnings... 350,000 Treasury stock (600 shares at cost). Total stockholders'equity.... (27,000) $1,525,000
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