Lewis Company
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Preparation of corrected stockholders' equity section of the balance sheet.
On December 31, Lewis Company prepared the following stockholders' equity section of its balance sheet. Unfortunately, some errors were made.
Preferred stock $45 per 2,000 shares issued and outstanding $90,000
Paid-in capital in excess of par, preferred stock $33,000
Common stock $26 par, $24,000 shares issued and $22,800 shares outstanding 624,000
Pain-in capital in excess of par, common stock 1,190,000
Net income for year 345,000
Less, cash dividends declared and paid (283,300)
Retained earnings, January 1 370000
Less. Treasury stock 1,200 shares, purchased at $45 per share (54,000)
Total stockholders equity $2,314,700
Required:
Revise Lewis Company's stockholders' equity section of its balance sheet for December 31, as appropriate.
Note: In the final answer, use "Additional Paid-in Capital" to combine all of the additional Paid-In Capital accounts
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Solution Summary
This solution is comprised of a detailed explanation to revise Lewis Company's stockholders' equity section of its balance sheet for December 31, as appropriate.
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On December 31, Lewis Company prepared the following stockholders' equity section of its balance sheet. Unfortunately, some errors were made.
Preferred stock $45 per 2,000 shares issued and outstanding $90,000
Paid-in capital in excess of par, preferred stock $33,000
Common stock $26 par, $24,000 shares issued and $22,800 shares outstanding 624,000
Pain-in capital in excess of par, common stock 1,190,000
Net income ...
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