deduct treasury stock from total paid in capital and retained earnings 618613

Jennifer Corporation has issued 300,000 shares of $3 par value common stock. It authorized 600,000 shares. The paid-in capital in excess of par on the common stock is $380,000. The corporation has reacquired 15,000 shares at a cost of $50,000 and is currently holding those shares. Treasury stock was reissued in prior years for $72,000 more than its cost.

The corporation also has 4,000 shares issued and outstanding of 8%, $100 par value preferred stock. It authorized 10,000 shares. The paid-in capital in excess of par on the preferred stock is $25,000. Retained earnings is $610,000.

Prepare the stockholders’ equity section of the balance sheet.

Present capital stock first; list preferred stock before common stock.

Present additional paid-in capital after capital stock.

Report retained earnings after capital stock and additional paid-in capital.

Deduct treasury stock from total paid-in capital and retained earnings.