Answer:
$373,720
Explanation:
Preparation of stockholders’ equity section of Draco’s balance sheet as of December 31
DRACO CORPORATION
Stockholders' Equity Section of the Balance Sheet
December 31
Preferred stock- $10 par value $16,000
(1,600*10)
Paid in capital in excess of par- Preferred stock 59,200
[(47-10)*1,600]
Common stock- $2 par value 12,800
(6,400*2)
Paid in capital in excess of par- Common stock 256,000
[(42-2)*6,400]
Retained earnings 47,000
(74,000-27,000)
Less: Treasury stock (17,280)
(320*54)
Total stockholders' equity $373,720
Therefore stockholders’ equity section of Draco’s balance sheet as of December 31 will be $373,720