Question

Stockholders’ Equity Section of the Balance Sheet The newly hired accountant at Grain field Inc. is considering the following list of accounts as he prepares the balance sheet. All of the accounts have positive balances. The company is authorized to issue 1,000,000 shares of common stock and 10,000 shares of preferred stock. The treasury stock was purchased at $5 per share.
Treasury stock (common) .........$ 15,000
Retained earnings ............54,900
Dividends payable ...............1,500
Common stock, $1 par ...........100,000
Additional paid-in capital . .........68,400
Preferred stock, $10 par, 5% .......50,000

Required
1. Prepare the Stockholders’ Equity section of the balance sheet for Grain field.
2. Explain why some of the listed accounts are not shown in the Stockholders’ Equity section.



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  • CreatedJanuary 12, 2012
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