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    Racing Cars Inc. - Stockholders Equity

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    Racing Cars Inc. has the following accounts and balances on April 30th, the end of the current year:

    Common Stock $400,000
    Paid-in Capital in Excess of Par-Common Stock 120,000
    Paid-in Capital in Excess of Par-Preferred Stock 90,000
    Paid-in Capital from Sale of Treasury Stock-Common 30,000
    Preferred 4% Stock, $50 par 1,500,000
    Retained Earnings 3,900,000
    Treasury Stock-Common 55,000

    Fifty thousand shares of preferred and 200,000 shares of common stock are authorized. Thee are 5,000 shares of common stock held as treasury stock. Prepare the Stockholders Equity section of the balance sheet as of April 30, the end of the current year.

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    Solution Summary

    For your review, I have attached a formatted MS Excel spreadsheet containing an illustration along with detailed instructions for the creation of the Stockholders' Equity section of Racing Cars Inc.'s balance sheet.