Answer:
Explanation:
The preparation of the stockholders' equity section of the balance sheet is shown below:
Common stock, $10 par value,
103,000 shares authorized and 20,000
shares of common stock issued $200,000 (20,000 × $10)
Paid in capital in excess of par value $120,000 {20,000 shares × ($16 - $10)}
Preferred stock, 3000 shares issued at par $24,000 (3,000 shares × $8)
Paid in capital in excess of par value $36,000 {3,000 shares × ($20 - $8)}
Retained earnings $60,000
Total $440,000
