Answer:
Stockholders’ equity
Common Stock ($5 stated value) $1,725,000
Preferred Stock (8%, $105 par) $509,250
Paid-in Capital in Excess of Par - Preferred Stock $280,000
Paid-in Capital in Excess of Par - Common Stock $907,000
Retained Earnings $1,180,000
Treasury Stock (10,000 common shares) <u>($120,000)</u>
Total Stockholders’ equity <u>$4,481,250</u>
Explanation:
Preferred and Common stock are recorded on basis of their par value and Excess to par value separately.
Retained earning is the balance of accumulated earnings after apaying dividends
Treasury stock balance includes the value of own share repurchased by the company. It is a contra equity account and has debit nature.