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Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

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BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Stockholders' Equity section of balance sheet

The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year:

Common Stock, $45 par $ 3,060,000
Paid In Capital from Sale of Treasury Stock 115,000
Paid In Capital in Excess of Par—Common Stock 272,000
Retained Earnings 20,553,000
Treasury Stock 324,000

Prepare the Stockholders' Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are authorized, and 9,000 shares have been reacquired.

To determine

Stockholders’ Equity Section: It is refers to the section of the balance sheet that shows the available balance of stockholders’ equity as on reported date at the end of the financial year.

To prepare: The paid-in capital portion of the stockholders’ equity section of the balance sheet for G Properties Incorporation.

Explanation

Prepare the paid-in capital portion of the stockholders’ equity section of the balance sheet for G Properties Incorporation.

Stockholders’ equity section
Particulars Amount ($) Amount ($) Amount ($)
Paid-in Capital:

      Common Stock, $45 par

      (80,000 shares authorized,

       68,000 shares issued)

$3,060,000

   
     Excess over par $272,000
         Paid in capital, common stock $3,332,000
      From sale of treasury stock   $115,000
         Total paid-in capital     $3,447,000
Retained earnings $20,553,000
     Total     $24,000,000
Less: Treasury stock (9,000 shares at cost)

($324,000)

Total stockholders’ equity $23,676,000

Table (1)

Description:

The proforma of the reporting the stockholders’ equity section of the partial balance sheet is shown below for be...

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