Answer:
<u>Stockholders’ equity</u>
Common Stock $2,200
Preferred Stock $8,200
Paid-in Capital in Excess of Par - Common Stock $40,200
Paid-in Capital in Excess of Par - Preferred Stock $8,200
Retained Earnings $51,000
Treasury Stock (10,000 common shares) <u>($3,200)</u>
Total Stockholders’ equity <u>$106,600</u>
Explanation:
Stockholders Equity Includes the book value of common stock, Preferred stock, Treasury stock and Retained earning.
Common and Treasury Stock are recorded as their issuance value, which include Par value. Add in Capital is the excess of par value, when stock is issued at price above par value.
Treasury stock balance includes the value of own share repurchased by the company. It is a contra equity account and has debit nature.
Retained earning is the balance of accumulated earnings after paying dividends.
