BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

Solutions

Chapter
Section
BuyFindarrow_forward

Accounting

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

Stockholders' Equity section of balance sheet

Specialty Auto Racing Inc. retails racing products for BMW's, 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:

Common Stock, $36 par $10,080.000
Paid In Capital from Sale of Treasury Stock—Common 340.000
Paid In Capital in Excess of Par—Common 5tock 420.000
Paid In Capital in Excess of Par—Preferred 5tock 384,000
Preferred 1 % Stock, $ 150 par 7,200,000
Retained Earnings 71,684,000
Treasury Stock—Common 1,008,000

Fifty thousand shares of preferred and 3000,000 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 8.

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 SAR Incorporation.

SAR Incorporation
As on June 31
Stockholders’ equity section
Particulars Amount ($) Amount ($) Amount ($)
Paid-in Capital:

     Preferred 1% Stock, $150 par (50,000

     shares authorized, 48,000 shares issued)

$7,200,000    
     Excess over par $384,000  
         Paid in capital, preferred stock $7,584,000  

     Common Stock, $36 par (300,000

     shares authorized, 280,00 shares issued)

  $10,080,000    
     Excess over par $420,000  
         Paid in capital, common stock $10,500,000  
     From sale of treasury stock   $340,000
         Total paid-in capital   $18,424,000
Retained earnings   $71,684,000
      Total   $90,108,000
Treasury common stock (24,000 shares at cost)   ($1,008,000)
     ...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What is corporate culture?

Foundations of Business (MindTap Course List)

When is a stock said to be in equilibrium? Why might a stock at any point in time not be in equilibrium?

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

(Cooperatives) How do cooperatives differ from typical businesses?

ECON: MICRO4 (New, Engaging Titles from 4LTR Press)

EXCESS CAPACITY Krogh Lumbers 2014 financial statements are shown here. Krogh Lumber: Balance Sheet as of Decem...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)