=+EX 13-17 Retained earnings statement obj. 6

✔ Retained earnings, January 31,

$3,375,000 List the errors in the following Stockholders’ Equity section of the balance sheet prepared as of the end of the current year.

Stockholders’ Equity Paid-in capital:

Preferred 2% stock, $150 par

(10,000 shares authorized and issued) . . . . . . . . . . . . . . . $1,500,000 Excess of issue price over par . . . . . . . . . . . . . . . . . . . . . . . 250,000 $ 1,750,000 __________ Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,450,000 Treasury stock (6,000 shares at cost) . . . . . . . . . . . . . . . . . . 432,000 Dividends payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135,000 ___________ Total paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,767,000 Common stock, $75 par (250,000 shares authorized, 180,000 shares issued) . . . . . . . . . . . . . . . . . . . . 14,040,000 Organizing costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 ___________ Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,857,000 ___________