E8-14B. Prepare equity section of the balance sheet. (LO I, 3, 5)

The following account balances can be found in the general ledger of Athletics Supply Corporation at year-end. Prepare the shareholder’s equity section of the balance sheet

Retained earnings

$ 450,000

Treasury stock (4,000 common shares at cost)

36,000

Common stock ($2 par, 500,000 shares authorized,

175,000 shares issued)

350,000

Additional paid-in capital, common stock

2,712,500

Preferred stock ($8 par value, 8%, 90,000 shares authorized,

20,000 shares issued)

160,000

Additional paid-in capital, preferred stock

50,000