Sports Car Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances

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Sports Car Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Sports Car Inc. on November 30, the end of the current year:

Common Stock, $5 par ..................$ 875,000

Paid-In Capital in Excess of Par—Common Stock ........ 700,000

Paid-In Capital in Excess of Par—Preferred Stock ........ 25,000

Paid-In Capital from Sale of Treasury Stock—Common ..... 16,000

Preferred 3% Stock, $75 par ................ 937,500

Retained Earnings ....................2,338,000

Treasury Stock—Common ................ 165,000

Twenty thousand shares of preferred and 400,000 shares of common stock are authorized. There are 22,000 shares of common stock held as treasury stock.

Prepare the Stockholders’ Equity section of the balance sheet as of November 30, the end of the current year.


Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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