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29 October, 00:53

The following stockholders' equity accounts, arranged alphabetically, are in the ledger of Sarasota Corp. at December 31, 2022.

Common Stock ($2 stated value) $2,400,000

Paid-in Capital in Excess of Par Value-Preferred Stock 67,500

Paid-in Capital in Excess of Stated Value-Common Stock 1,575,000

Preferred Stock (5%, $100 par, noncumulative) 900,000

Retained Earnings 2,001,000

Treasury Stock (18,000 common shares) 108,000

Prepare the stockholders' equity section of the balance sheet at December 31, 2022.

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  1. 29 October, 01:01
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    Answer and Explanation:

    The preparation of the stockholder equity section of the balance sheet is presented below:

    Stockholders' equity

    Paid in capital

    Capital stock

    5% preferred stock, $100 par value, noncumulative, 9,000 shares are issued and outstanding $900,000

    Common stock, no par, $2 stated value, $2,400,000

    Total capital stock $3,300,000 (A)

    Additional paid in capital

    Paid-in Capital in Excess of Par Value $67,500

    Paid-in Capital in Excess of Stated Value - Common Stock $1,575,000

    Total additional paid in capital $1,642,500 (B)

    Total paid in capital $4,942,500 (A + B)

    Add: Retained earnings $ 2,001,000

    Total paid in capital and retained earnings $6,943,000

    Less: Treasury stock (18,000 common shares) $ (108,000)

    Total stockholders' equity $6,835,500
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