Question

The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Whispering Winds Corp. at December 31, 2022.
Common Stock ($4 stated value) $2,560,000
Paid-in Capital in Excess of Par Value—Preferred Stock 72,000
Paid-in Capital in Excess of Stated Value—Common Stock 1,680,000
Preferred Stock (6%, $100 par, noncumulative) 960,000
Retained Earnings 2,134,400
Treasury Stock (19,200 common shares) 115,200

Prepare the stockholder's equity section of the balance sheet at December 31, 2020.

Answer 1

Answer:

Total stockholders' equity is $7,291,200  

Explanation:

The stockholders' equity section of the balance sheet is prepared as balance sheet extract below:

Common stock ($4 stated value)                                     $2,560,000

Preferred stock                                                                  $960,000

Total capital stock                                                              $3,520 ,000

paid in capital  common stock                                           $1,680,000

paid in capital preferred stock                                                 $72,000

Total paid in capital                                                            $5,272,000

Retained earnings                                                              $2,134,400

Total paid capital and retained earnings                          $7,406,400

treasury stock                                                                          ($115,200)

total stockholders' equity                                                     $7,291,200  

Every line item is meant to added in arriving at the stockholders' total equity except for treasury stock