Question

Place each of the items listed below in the appropriate subdivision of the stockholders' equity section of a balance sheet. Common stock, $10 stated value Retained earnings 8% Preferred stock, $100 par value Paid-in capital in excess of par Paid-in capital in excess of stated value Treasury stock—common Paid-in capital from treasury stockStockholders' equityPaid-in capitalCapital stockAdditional paid-in capitalTotal additional paid-in capitalTotal paid-in capitalRetained earningsTotal paid-in capital and retained earningsTotal stockholders' equity

Answer 1

Answer and Explanation:

The placing of each item would be shown below:

Stockholder's Equity

Paid-in Capital

Capital Stock

8% Preferred stock, $100 par value

Common Stock, $10 stated value

Additional Paid-in Capital

In excess of par value- Preferred stock

In excess of stated Value - Common stock

Total Additional Paid-in Capital

Total Paid-in Capital

Retained Earnings

Total paid-in Capital and Retained Earnings

Less: Treasury Stock- common

Total Stockholder's Equity