Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing Inc. on July 31, the end of the current year: (1) Common Stock, $32par - $8,755,200. (2) Paid in Capital from Sale of Treasury Stock-Common $342,000. (3) Paid in Excess of Par-Common Stock $2,736,000. (4) Paid in Excess of Par-Preferred Stock $481,500. (5) Preferred 1% Stock, $150 par $7,222,500. (6) Retained Earnings $74,660,900. (7) Treasury Stock-Common $1,020,800.
Fifty thousand shares of preferred and 300,000 shares of common stock are authorized. There are 23,200 shares of common stock held as treasury stock
Accounts and Amount Descriptions
Common stock, $32 par; 300,000 shares authorized, 273,600 issued; Common stock dividends; Excess of issue price over par; From sale of treasury stock; Increase in retained earnings; Preferred 1% stock, $150 par; 50,000 shares authorized, 48,150 shares issued; Preferred stock dividends; Retained earnings; Total; Total contributed capital; Total paid-in capital; Total stockholders’ equity; Treasury common stock; 23,200 shares at cost.
Prepare the Stockholders’ Equity section of the balance sheet as of July 31, the end of the current year using Method 1 of Exhibit 7. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Deduct” will automatically appear if required.
Speciality Auto Racing Inc / Stockholder's Equity / July 31
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