Question

Prom Night Formal Wear has the following stockholders' equity accounts at December 31, 2018: Common Stock, $1 par value, 1,900,000 shares; Additional Paid-in Capital, $23 million; Retained Earnings, $16 million; and Treasury Stock, 40,000 shares, $1.85 million. Prepare the stockholders' equity section of the balance sheet. (Enter your answers in dollars, not in millions. Amounts to be deducted should be indicated with a minus sign.)

Answer 1

Prom Night Formal Wear

Balance sheet

Stockholders' equity section

December 31, 2018

PARTICULAR AMOUNT

Stockholders equity

Common stock $1,900,000

Additional Paid-in capital $23,000,000

Total Paid-Up Capital $24,900,000

Retained earning $16,000,000

Treasury stock ($1,850,000)

Total Stockholder equity $39,050,000