Sports Car Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Sports Car Inc. on November 30, the end of the current year:
Common Stock, $5 par…$875,000<
Paid-In Capital in Excess of Par-Common Stock…$700,000
Paid-In Capital in Excess of Par-Preferred Stock…$25,000
Paid-In Capital from Sale of Treasury Stock-Common…$16,000
Preferred 3% Stock, $75 par…$937,500<
Retained Earnings…$2,338,000
Treasury Stock- Common…$165,000
Twenty thousand shares of preferred and 400,000 shares of common stock are authorized. There are 22,000 shares of common stock held as treasury stock.
Prepare the Stockholders Equity section of the balance sheet as of November 30, the end of the current year.
TUTORIAL PREVIEW
STOCKHOLDER’S EQUITY
November
30
Preferred Stock ($75 par; 12,500
issued) $ 937,500
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