Question

Stockholders' Equity Paid-In Capital: Common Stock, $120 Par (500,000 Shares Authorized, 400,000 Shares Issued) $ Excess over par Paid-in capital, common stock $ From Sale of Treasury Stock Total Paid-In Capital $ Retained Earnings Total $ Treasury Stock (40,000 Shares at Cost) Total Stockholders' Equity

Answer 1

$117,380,000

Explanation:

Stockholders' Equity section of the balance sheet

Paid in capital:

common stock $120 Par (500,000 Shares Authorized, 400,000 Shares Issued) = $120 * 400,000 = $48,000,000

Excess over par = $6,400,000

Paid in capital, common stock = $48,000,000 + $6,400,000 =$54,400,000

From sale of treasury stock = $4,500,000

Sum total paid-in capital = $54,400,000 + $4,500,000 = $58,900,000

Retained earnings =$63,680,000

Treasury stock (40,000 shares at cost) = $5,200,000

Total stockholders’ equity =$58,900,000 + $63,680,000 - $5,200,000

= $117,380,000