Question

Summit Apparel has the following accounts at December 31: Common Stock, $1 par value, 1,800,000 shares issued; Additional Paid-in Capital, $17.80 million; Retained Earnings, $10.80 million; and Treasury Stock, 58,000 shares, $1.276 million. Prepare the stockholders’ equity section of the balance sheet. (Amounts to be deducted should be indicated by a min

Answer 1

Answer:

$29,124,000

Explanation:

Preparation of the stockholders’ equity section of the balance sheet.

SUMMIT APPAREL Balance Sheet

(Stockholder's Equity Section)Dec-31

Stockholder's equity:

Common stock $1,800,000

Additional paid-in capital $17,800,000

Total paid-in capital $19,600,000

($1,800,000+$17,800,000)

Retained earnings $10,800,000

Less Treasury stock ($1,276,000)

Total stockholder's equity $29,124,000

($19,600,000+$10,800,000-$1,276,000)

Therefore the stockholders’ equity section of the balance sheet is $29,124,000.