Answer and Explanation:
The preparation of stockholders’ equity section is shown below:-
Worldwide Company
Statement of stockholder equity
31 December
Paid-in-capital
Common stock - $10 par, 200,000 shares authorized
60,000 shares issued and outstanding $600,000
Paid in capital in excess of par - common $120,000
(60,000 × $12) - (60,000 × $10)
Paid in capital from treasury stock $3,000
(1,000 × $18) - (1,000 × $15)
Total paid in capital $717,000
Retained earning $38,200
Sub total $755,200
Less: Treasury stock at cost $15,000
(1,000 × $15)
Total stockholder equity $740,200
Therefore from above the stockholders’ equity is prepared.
