The following accounts appear in the ledger of Ortiz Inc. after the books are closed at December 31.
|
Common Stock, no par, $1 stated value, 400,000 shares authorized; |
|
|
300,000 shares issued |
$ 300,000 |
|
Common Stock Dividends Distributable |
30,000 |
|
Paid in Capital in Excess of Stated Value—Common Stock |
1,200,000 |
|
Preferred Stock, $5 par value, 8%, 40,000 shares authorized; |
|
|
30,000 shares issued |
150,000 |
|
Retained Earnings |
800,000 |
|
Treasury Stock (10,000 common shares) |
74,000 |
|
Paid in Capital in Excess of Par Value—Preferred Stock |
344,000 |
Instructions
Prepare the stockholders’ equity section at December 31, assuming retained earnings is restricted for plant expansion in the amount of $100,000.