Answer:
Stahl Company
Stockholders' Equity section of the balance sheet
As of December 31, 2019
Authorized shares:
Common Stock, 600,000 at $2 par value
6%, Preferred Stock, 80,000 at $20 par value
Issued shares:
Common stock, 75,000 at $2 par value $150,000
6% Preferred stock, 5,000 at $20 par value 100,000
Additional Paid-in Capital, Common stock 975,000
Additional Paid-in Capital, 6% Preferred stock 25,000
Retained earnings, December 31, 2019 500,000
Total equity $1,750,000
Explanation:
a) Data and Calculations:
Authorized shares:
Common Stock, 600,000 at $2 par value
6%, Preferred Stock, 80,000 at $20 par value
Issued shares:
Cash $1,125,000 Common stock $150,000 Additional Paid-in Capital, Common stock (75,000 * $13) $975,000
Cash $125,000 6% Preferred stock, $100,000 Additional Paid-in Capital, 6% Preferred stock $25,000 ($5 * 5,000)
Retained earnings, December 31, 2019 = $500,000
