Method to be used:

Instructions Using the following accounts and balances, prepare the Stockholders' Equity section of the balance sheet using Method 1 of Exhibit 8. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign Two hundred fifty thousand shares of common stock are authorized, and 16,000 shares have been reacquired. Common Stock, $55 par Paid-In Capital from Sale of Treasury Stock Paid-In Capital in Excess of Par-Common Stock Retained Earnings Treasury Stock $10,725,000 347,000 3,020,000 17,280,000 1,040,000 Accounts and Amount Descriptions Common stock, $55 par (250,000 shares authorized, 182,500 shares issued) Common stock, $55 par (250,000 shares authorized, 195,000 shares issued) Dividends on common stock Excess over par From sale of treasury stock Issuance of additional common stock Net income Paid-in capital, common stock Purchase of treasury stock Retained earnings Total Total paid-in capital Total stockholders' equity Treasury stock (16,000 shares at cost) Stockholders' Equity 1 Paid-in capital: 2 3 4 5 6 7 8 9 10 EXHIBIT 8 Stockholders' Equity Section of a Balance Sheet Telex Inc. Balance Sheet December 31, 2047 $100,000 10,000 $ 110,000 Stockholders' Equity Paid-in capital: Preferred 10% stock, $50 par (2,000 shares authorized and issued)......... Excess over par Paid-in capital, preferred stock.... Common stock, $20 par (50,000 shares authorized, 45,000 shares issued)....... Excess over par Paid-in capital, common stock. From sale of treasury stock.... Total paid-in capital... Retained earnings...... Total.... Treasury stock (600 shares at cost). Total stockholders'equity..... $900,000 190,000 Method 1 1,090,000 2,000 $1,202,000 350,000 $1,552,000 (27,000 $1,525,000