Question

Prom Night Formal Wear has the following stockholders' equity accounts at December 31, 2018: Common Stock, $1 par value, 1,900,000 shares; Additional Paid-in Capital, $23 million; Retained Earnings, $16 million; and Treasury Stock, 40,000 shares, $1.85 million. Prepare the stockholders' equity section of the balance sheet. (Enter your answers in dollars, not in millions. Amounts to be deducted should be indicated with a minus sign.)

Answer 1

Answer:

                             Prom Night Formal Wear

                                      Balance sheet

                             Stockholders' equity section

                                    December 31, 2018

                PARTICULAR                                         AMOUNT

Stockholders equity

Common stock                                                       $1,900,000

Additional Paid-in capital                                       $23,000,000

Total Paid-Up Capital                                            $24,900,000

Retained earning                                                    $16,000,000

Treasury stock                                                         ($1,850,000)

                                                                                                       

Total Stockholder equity                                      $39,050,000