Question

Summit Apparel has the following accounts at December 31: Common Stock, $1 par value, 1,800,000 shares issued; Additional Paid-in Capital, $16.20 million; Retained Earnings, $9.20 million; and Treasury Stock, 42,000 shares, $0.924 million. Prepare the stockholders’ equity section of the balance sheet. (Amounts to be deducted should be indicated by a minus sign. Enter your answer in dollars, not millions. For example, $5.5 million should be entered as 5,500,000.)

Answer 1

Answer:

Total Stockholder's Equity is $26,276,000.

Explanation:

                Stockholders’ equity section of the balance sheet

Common Stock @ $1          $1,800,000

Additional Paid-in Capital, $1,6200,000

Retained Earnings,             $9200,000

Less: Treasury Stock          $924,000

Total Shareholders Equity $26,276,000

As treasury stock is the contra equity account so its value will be deducted from equity. So total Stockholder's Equity is $26,276,000.