Question

Marigold Corp. has these accounts at December 31: Common Stock, $12 par, 5,200 shares issued, $62,400; Paid-in Capital in Excess of Par Value $18,700; Retained Earnings $43,700; and Treasury Stock, 470 shares, $10,340. Prepare the stockholders' equity section of the balance sheet.

Answer 1

Answer:

Total Paid in capital = $81100

Total paid in capital and retained earnings = $124800

Total Stockholder's equity are = $114460

Explanation:

given data

Common Stock  = $12 par value 5200 shares

shares issued =  $62400

Paid-in Capital  = $18700

Retained Earnings = $43700

Treasury Stock  470 shares = $10340

to find out

stockholders' equity section of the balance sheet

solution

we get first Total Paid in capital that is

Total Paid in capital = shares issued  + Paid-in Capital   ..............1

Total Paid in capital = $62400  + $18700

Total Paid in capital = $81100

and

Total paid in capital and retained earnings = Total Paid in capital + Retained Earnings    .................2

Total paid in capital and retained earnings = $81100 + $43700

Total paid in capital and retained earnings = $124800

and

so Total Stockholder's equity are = Total paid in capital and retained earnings - Treasury stock   ..................3

Total Stockholder's equity are = $124800 - $10340

Total Stockholder's equity are = $114460