Question

Donnie Hilfiger has the following balances in its stockholders' equity accounts on December 31, 2015: Treasury Stock, $400,000; Common Stock, $350,000; Preferred Stock, $1,000,000; Retained Earnings, $1,600,000; and Additional Paid-in Capital, $3,200,000.

Prepare the stockholders' equity section of the balance sheet for Donnie Hilfiger as of December 31, 2015. (Amounts to be deducted should be indicated with a minus sign.)

DONNIE HILFIGER
Balance Sheet
(Stockholders' Equity Section)
December 31, 2015
Stockholders' equity:
Total paid-in capital
Total stockholders' equity

Answer 1

Step-by-step explanation:

The preparation of the stockholders' equity section of the balance sheet for Donnie Hilfiger as of December 31, 2015 is presented below:

DONNIE HILFIGER

Balance Sheet

(Stockholders' Equity Section)

As of December 31, 2015

Common stock $350,000

Preferred stock $1,000,000

Additional paid in capital $3,200,000

Total paid in capital $4,550,000

Retained earnings $,1600,000

Total $6,150,000

Less: Treasury stock - $400,000

Total Stock holders equity $5,750,000