The following accounts appear in the ledger of Sather Inc. after the books are closed at December 31, 2012.
|
Common Stock (no-par, $1 stated value, 400,000 shares |
|
|
authorized, 250,000 shares issued) |
$ 250,000 |
|
Paid-in Capital in Excess of Stated Value—Common Stock |
1,200,000 |
|
Preferred Stock ($50 par value, 8%, 40,000 shares authorized, |
|
|
14,000 shares issued) |
700,000 |
|
Retained Earnings |
920,000 |
|
Treasury Stock (9,000 common shares) |
64,000 |
|
Paid-in Capital in Excess of Par Value—Preferred Stock |
24,000 |
Instructions
Prepare the stockholders” equity section at December 31, assuming $100,000 of retained earnings is restricted for plant expansion. (Use Note R.)