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    Stockholder's equity section

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    PROBLEM #1

    Prepare a stockholders' equity section. Financial Accounting

    E11-8 Wells Fargo & Company, headquartered in San Francisco, is one of the nation's largest financial institutions. It reported the following selected accounts (in millions) as of December 31, 2004.

    Retained earnings $27,143
    Preferred stock 270
    Common stock-$1_
    par value, authorized 6,000,000,000 shares;
    issued 1,736,381,025 shares 2,894
    Treasury stock-41,789,388 shares (2,247)
    Additional paid-in capital-common stock 9,806

    Instructions
    1. Prepare the stockholders' equity section of the balance sheet for Wells Fargo as of December 31, 2004.

    2. Comment on how this information is important to the company accounting reports and any other general comment to learn understand this concept.

    PROBLEM #2

    Prepare a stockholders' equity section. Financial Accounting

    E11-10 The following accounts appear in the ledger of Sycamore Inc. after the books are closed at December 31, 2007.
    Common Stock (no-par, $1 stated value, 400,000 shares authorized,
    200,000 shares issued) $ 200,000
    Paid-in Capital in Excess of Stated Value-Common Stock 1,200,000
    Preferred Stock ($50 par value, 8%, 40,000 shares authorized, 12,000
    shares issued) 600,000
    Retained Earnings 900,000
    Treasury Stock (10,000 common shares) 64,000
    Paid-in Capital in Excess of Par Value-Preferred Stock 24,000
    Reporting and Analyzing Stockholders' Equity
    Instructions
    1. Prepare the stockholders' equity section at December 31, assuming $100,000 of retained
    earnings is restricted for plant expansion. (Use Note R.)

    Note R: Retained earnings is restricted for the cost of treasury stock, $80,000.

    2. Comment on what makes this problem different from problem #1 and any other general comment to learn understand this concept.

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    Solution Preview

    E11-8 Wells Fargo & Company, headquartered in San Francisco, is one of the nation's largest financial institutions. It reported the following selected accounts (in millions) as of December 31, 2004.

    Retained earnings $27,143 ...

    Solution Summary

    Response provides the steps to prepare the stockholder's equity section

    $2.19

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