Novak Corp. has these accounts at December 31: Common Stock, $12 par, 5,500 shares issued, $66,000; Paid-in Capital in Excess of Par Value $19,000; Retained Earnings $44,000; and Treasury Stock, 500 shares, $11,000. Prepare the stockholders' equity section of the balance sheet.

Question

Lizbeth Solomon

Business

14 October, 16:51

Novak Corp. has these accounts at December 31: Common Stock, $12 par, 5,500 shares issued, $66,000; Paid-in Capital in Excess of Par Value $19,000; Retained Earnings $44,000; and Treasury Stock, 500 shares, $11,000. Prepare the stockholders' equity section of the balance sheet.

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Diamond Whitaker · Answer 1

Total stockholders equity = $118,000

Explanation:

Novak Corp.

Balance sheet (stockholders' equity section)

As a December 31 20YY

Stockholders' equity

Common stock ($12 per, 5,500 share issued) = $66,000

Paid-in Capital in Excess of Par Value - Common stock = $19,000

Less: Treasury Stock (500 shares) = ($11,000)

Shares outstanding (5000 shares) = $74,000

Retained Earnings = $44,000

Total stockholders equity = $118,000