Question

reparation of Stockholders’ Equity Section Wildcat Drilling has the following accounts on its trial balance. Debit Credit Retained Earnings 600,000 Cash 825,000 Additional Paid-In Capital—Common 3,100,000 Additional Paid-In Capital—Preferred 400,000 Accounts Payable 345,000 Accounts Receivable 410,000 Common Stock, $1 par 600,000 Preferred Stock, $10 par 340,000 Inventory 1,300,000 Treasury Stock—Common (30,000 shares) 382,000 Accumulated Other Comprehensive Income 70,000 Required: Prepare the stockholders’ equity portion of Wildcat’s balance sheet.

Answer 1

Answer:

Wildcat Drilling

Stockholders' Equity Section:

Common Stock, $1 par                                         600,000

Preferred Stock, $10 par                                      340,000

Additional Paid-In Capital—Common                3,100,000

Additional Paid-In Capital—Preferred                 400,000

Treasury Stock—

Common (30,000 shares)                                  (382,000)

Retained Earnings                                               600,000

Accumulated Other Comprehensive Income      70,000

Explanation:

a) Data and Calculations:

Wildcat Drilling Trial Balance Accounts:

                                                           Debit              Credit

Cash                                               825,000

Accounts Receivable                     410,000

Inventory                                    1,300,000

Accounts Payable                                                  345,000

Common Stock, $1 par                                         600,000

Preferred Stock, $10 par                                      340,000

Additional Paid-In Capital—Common                3,100,000

Additional Paid-In Capital—Preferred                 400,000

Treasury Stock—

Common (30,000 shares)           382,000

Retained Earnings                                               600,000

Accumulated Other Comprehensive Income      70,000