Answer and Explanation:
The preparation of the stockholders’ equity section at December 31, 2020 is presented below:
Oriole Company
Stockholders’ equity section
December 31, 2020
Particulars Amount
Stockholder equity:
Paid in capital:
Capital Stock
Preferred stock $143,500
Common Stock dividend $568,000
Common Stock Dividends Distributable $25,000 $593,000
Total capital stock $736,500
Additional paid in capital
Paid-in Capital in Excess of Par - Preferred Stock $343,000
Paid-in Capital in Excess of Stated Value - Common Stock $1,110,000
Total paid in capital $2,189,500
Add: Retained earnings $758,000
Total paid in capital and retained earnings $2,947,500
Less: Treasury stock -$96,600
Less: Accumulated Other Comprehensive Loss -$34,500
Total Stockholder equity $2,816,400
We deduct the treasury stock and the accumulated other comprehensive loss and rest items are added so that the total stockholder equity could arrive
