The following account balances, before any closing entries, appear on the books of Spring Company as of

Question:

The following account balances, before any closing entries, appear on the books of Spring Company as of December 31, 2012:
Retained Earnings (balance at January 1, 2012) . . . . . . . . . . . . . . . . . . . . . . . . . $ 350,000
Dividends, Preferred Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000
Dividends, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000
($1 par, 100,000 shares authorized,
70,000 issued and outstanding) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000
Paid-In Capital in Excess of Par, . . . . . . . . . . . . . . . . . . . . . . . . . 1,330,000
Preferred Stock (8%, $50 par, 50,000 shares authorized,
5,000 issued and outstanding) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000
Paid-In Capital in Excess of Par, Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000
Based on these account balances, and assuming net income for 2012 of $125,000, prepare the stockholders’ equity section of the December 31, 2012, for Spring Company.

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...