Question

The corporation assigned a $5 stated value to the common stock. At December 31, 2017, the ledger contained the following balances pertaining to stockholders’ equity. Preferred Stock $150,000 Paid-in Capital in Excess of Par Value—Preferred Stock 21,000 Common Stock 1,960,000 Paid-in Capital in Excess of Stated Value—Common Stock 1,510,000 Treasury Stock (4,000 common shares) 40,000 Retained Earnings 85,000 Accumulated Other Comprehensive Income 49,000

Answer 1

The preparation of the partial balance sheet is shown below:

Step-by-step explanation:

Novak Corp

Partial Balance Sheet

December 31, 2017

Stockholders Equity

Paid-in capital

Capital stock

8% Preferred stock, $100 par value $150,000

Common stock, no par, $5 stated value $1,960,000

Total capital stock $2,110,000

Additional paid-in capital

In excess of par - preferred stock $21,000

In excess of stated value - common stock $1,510,000

Total additional paid-in capital $1,531,000

Total paid-in capital $3,641,000

Retained earnings $85,000

Total paid-in capital and retained earnings $3,726,000

Accumulated other comprehensive income $49,000

Less: Treasury stock (4,000 common shares) $(40,000)

Total stockholders’ equity $3,735,000