Question

Stockholders' Equity Section of Balance Sheet The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Common Stock, $15 par $594,000 Paid-In Capital from Sale of Treasury Stock 24,400 Paid-In Capital in Excess of Par—Common Stock 15,840 Retained Earnings 932,000 Treasury Stock 12,255 Prepare the Stockholders’ Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are authorized, and 645 shares have been reacquired. Goodale Properties Inc. Stockholders' Equity June 30, 20XX

Answer 1

Answer:

The preparation is shown below:

Explanation:

                                     Goodale Properties Inc.

                                        Stockholders' Equity

                                            June 30, 20XX

Common Stock, $15 par (80,000 shares authorized, 39,600 shares issued) $594,000  

Add: Paid-In Capital in Excess of Par—Common Stock $ 15,840

Add: From sale of Treasury stock  $24,400

Total Paid-In Capital $634,240

Add: Retained earnings  $932,000

Total  $1,566,240

Deduct: Treasury Stock -$12,255

Total Stockholders' Equity  $1,553,985

The treasury stock purchased is only deducted and the other items would be added so that the correct value could arrive