Question

Wells Fargo & Company, headquartered in San Francisco, is one of the nation’s largest financial institutions. Suppose it reported the following selected accounts (in millions) as of December 31, 2017.
Retained earnings $41,563
Preferred stock 8,485
Common stock—$12/3 par value, authorized 6,000,000,000 shares; issued 5,245,971,422 shares 8,743
Treasury stock—67,346,829 common shares (2,450)
Paid-in capital in excess of par value—common stock 52,878

Required:
Prepare the stockholders’ equity section of the balance sheet for Wells Fargo as of December 31, 2017

Answer 1

Answer:

EQUITY AND LIABILITIES

EQUITY

Retained earnings                    $ 41,563

Preferred stock                          $ 8,485

Common stock - Issued             $ 8,743

Treasury stock                           $ 2,450

Share Premium                        $ 52,878

Total Equity                                $114,119

Explanation:

The the stockholders’ equity section of the balance sheet shows the amount of capital invested by the shareholders in the business as well as the reserves that have been allocated to them.