Question

Summit Apparel has the following accounts at December 31: Common Stock. $1 par value, 1,300,000 shares issued: Additional Paid-in Capital, $16.70 million; Retained Earnings, $9.70 million; and Treasury Stock, 47,000 shares. $1.034 million

Prepare the stockholders' equity section of the balance sheet.

Answer 1

To calculate the stockholders' equity section of the balance sheet for Summit Apparel, you need to consider the common stock, additional paid-in capital, retained earnings, and treasury stock.

Step-by-step explanation:

The stockholders' equity section of the balance sheet for Summit Apparel at December 31 can be calculated as follows:

• Common Stock: 1,300,000 shares x $1 par value = $1,300,000
• Additional Paid-in Capital: $16.70 million
• Retained Earnings: $9.70 million
• Treasury Stock: 47,000 shares x market value

To complete the calculation, you need to know the market value of the treasury stock. Once you have that information, you can include it in the stockholders' equity section.