Using the following accounts and balances, prepare the stockholders' equity section of the balance sheet. Fifty thousand shares of common stock are authorized, and 5,000 shares have been reacquired.
$$\begin{array} { l r }
\text { Common Stock, } \$ 50 \text { par } & \$ 1,250,000 \
\text { Paid-In Capital in Excess of Par } & 800,000 \
\text { Paid-In Capital from Sale of Treasury Stock } & 42,000 \
\text { Retained Earnings } & 4,350,000 \
\text { Treasury Stock } & 155,000
\end{array}$$
What is the total amount of paid-in capital that would be reported on the statement of stockholders' equity?
A) $2,050,000
B) $2,092,000
C) $4,350,000
D) $6,287,000

Question

Using the following accounts and balances, prepare the stockholders' equity section of the balance sheet. Fifty thousand shares of common stock are authorized, and 5,000 shares have been reacquired. 
$$\begin{array} { l r } 
\text { Common Stock, } \$ 50 \text { par } & \$ 1,250,000 \
\text { Paid-In Capital in Excess of Par } & 800,000 \
\text { Paid-In Capital from Sale of Treasury Stock } & 42,000 \
\text { Retained Earnings } & 4,350,000 \
\text { Treasury Stock } & 155,000
\end{array}$$  
What is the total amount of paid-in capital that would be reported on the statement of stockholders' equity?
A) $2,050,000
B) $2,092,000
C) $4,350,000
D) $6,287,000

Quizplus · Accepted Answer

The total amount of paid-in capital is the sum of Common Stock ($1,250,000), Paid-In Capital in Excess of Par ($800,000), and Paid-In Capital from Sale of Treasury Stock ($42,000), which equals $2,092,000.

Using the Following Accounts and Balances, Prepare the Stockholders' Equity