The following accounts appear in the ledger of Rosswell Inc. after the books are closed at December 31, 2010.
Common Stock (no-par, $1 stated value, 400,000 shares
authorized, 250,000 shares issued) .................$ 250,000
Paid-in Capital in Excess of Stated Value—Common Stock ..........1,200,000
Preferred Stock ($50 par value, 8%, 40,000 shares authorized,
12,000 shares issued) .......................600,000
Retained Earnings ........................700,000
Treasury Stock (10,000 common shares) ...............64,000
Paid-in Capital in Excess of Par Value—Preferred Stock ........24,000
Instructions
Prepare the stockholders’ equity section at December 31, assuming $100,000 of retained earnings is restricted for plant expansion.