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.
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.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 5P: Alert Companys shareholders equity prior to any of the following events is as follows: The company...
Related questions
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 on July 31, the end of the current year
Common stock, $36 par |
$10,100,00 |
Paid-In Capital from Sale of |
340,000 |
Paid-In Capital in Excess of Par—Common Stock |
420,000 |
Paid-In Capital in Excess of Par— |
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
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8dfb21ec-fda0-4a20-b8ff-01908683a4d0%2Fd2286dc5-a34d-42a6-b47d-5d68c3b7d627%2F2mw0xg_processed.jpeg&w=3840&q=75)
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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Accounting (Text Only)](https://www.bartleby.com/isbn_cover_images/9781285743615/9781285743615_smallCoverImage.gif)
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Accounting (Text Only)](https://www.bartleby.com/isbn_cover_images/9781285743615/9781285743615_smallCoverImage.gif)
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning