Question

United Apparel has the following balances in its stockholders' equity accounts on December 31, 2021: Treasury Stock, $700,000; Common Stock, $450,000; Preferred Stock, $2,100,000; Retained Earnings, $1,450,000; and Additional Paid-in Capital, $7,300,000. Required: Prepare the stockholders' equity section of the balance sheet for United Apparel as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Answer and Explanation:

The preparation of stockholders' equity is shown below:-

Stockholder's equity Statement

December 31, 2021

Particulars Amount ($)

Paid-in capital

Preferred Stock $2,100,000

Common Stock $450,000

Additional paid in capital $7,300,000

Total paid in capital $9,850,000

Add:Retained earnings $1,450,000

sub total $11,300,000

Less: Treasury stock $700,000

Total stockholders' equity $10,600,000