Question

Ayayai Corp. has these accounts at December 31: Common Stock, $10 par, 4,500 shares issued, $45,000; Paid-in Capital in Excess of Par Value $18,000; Retained Earnings $43,000; and Treasury Stock, 400 shares, $8,800.

Prepare the stockholders’ equity section of the balance sheet.

Ayayai Corp. Balance Sheet (Partial) December 31

Answer 1

SOLUTION

Stockholders' equity
Paid-in capital
Capital Stock
Common Stock, $10 par, 4,500 shares issued	45,000
Additional paid-in capital
Paid in capital in excess of par value-common stock	18,000
Total paid in capital	63,000
Retained earnings	43,000
Total paid-in capital and retained earnings	106,000
Less: Treasury stock	(8,800)
Total stockholders' equity	97,200