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Stockholder's equity balance sheet

Prepare the stockholders' equity section of Commerce's balance sheet at December 31, 2010.

Commerce Corporation's post-closing trial balance at
December 31, 2010, was as follows.

Commerce Corporation
Post-Closing Trial Balance
December 31, 2010

Dr. Cr.
Accounts payable $ 668,000
Accounts receivable $ 605,000
Accumulated depreciation?equipment 450,000
Additional paid-in capital?common
In excess of par value 1,900,000
From sale of treasury stock 35,000
Allowance for doubtful accounts 20,000
Equipment 6,800,000
Cash 260,000
Common stock ($1 par value) 500,000
Dividends payable
on common stock?cash 50,000
Inventories 750,000
Investments 2,500,000
Preferred stock ($100 par value) 6,500,000
Prepaid insurance 65,000
Retained earnings 982,000
Treasury stock
?common at cost 125,000
Totals $11,105,000 $11,105,000

At December 31, 2010, Commerce had the following number of common and preferred shares.
Common Preferred
Authorized 2,500,000 1,000,000
Issued 500,000 65,000
Outstanding 490,000 65,000
The dividends on preferred stock are 6% cumulative. In addition, the preferred stock has a preference in liquidation of $102 per share.

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Solution Summary

Stockholder's equity balance sheets are examined.

$2.19