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The following stockholders' equity accounts arranged alphabetically are in the ledger of Wildhorse Co. at December 31, 2020.

Common Stock ($12 stated value) $1,776,000
Paid-in Capital from Treasury Stock 6,700
Paid-in Capital in Excess of Par-Preferred Stock 48,700
Paid-in Capital in Excess of Stated Value-Common Stock 659,000
Preferred Stock (8%, $101 par, noncumulative) 414,100
Retained Earnings 782,000
Treasury Stock-Common (7,900 shares) 102,700

Required:
Prepare a stockholders' equity section at December 31, 2020.

Sagot :

anthougo

Answer:

Wildhorse Co.

The stockholders' equity section of the Balance Sheet at December 31, 2020

Preferred Stock (8%, $101 par, noncumulative)                      414,100

Paid-in Capital in Excess of Par-Preferred Stock                    48,700

Common Stock ($12 stated value)                                      1,776,000

Paid-in Capital in Excess of Stated Value-Common Stock 659,000

Treasury Stock-Common (7,900 shares)                             (96,000)

Retained Earnings                                                                 782,000

Total stockholders' equity                                               $3,583,800

Explanation:

a) Data:

Preferred Stock (8%, $101 par, noncumulative)                      414,100

Paid-in Capital in Excess of Par-Preferred Stock                    48,700

Common Stock ($12 stated value)                                      1,776,000

Paid-in Capital in Excess of Stated Value-Common Stock 659,000

Treasury Stock-Common (7,900 shares)                             (96,000)

Retained Earnings                                                                 782,000

Total stockholders' equity                                               $3,583,800

b) The major components of the stockholders' equity include the stock accounts, paid-in capital, retained earnings, and the treasury stock.  The stockholders' equity represents the difference between the assets and the liabilities of Wildhorse Co.  The equity section shows the capital contributions of Wildhorse stockholders and the accumulated retained profits.

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