11BE - Intermediate Accounting (Kieso)

Question

Stowe Company’s December 31, 2017, trial balance includes the following accounts: Investment in Common Stock \(70,000, Retained Earnings \)114,000, Trademarks \(31,000, Preferred Stock \)152,000, Common Stock \(55,000, Deferred Income Taxes \)88,000, Paid-in Capital in Excess of Par—Common Stock \(174,000, and Noncontrolling Interest \)63,000. Prepare the stockholders’ equity section of the balance sheet.

Step-by-Step Solution

Answer

The stockholder’s equity section of the balance sheet totals $558,000.

Definition of Additional Paid-in-Capital

The excess amount received by the business entity for issuing shares in excess of the par value of the shares is reported in the accounts as additional paid-up capital under the equity side of the balance sheet.

Stockholder’s Equity Section

Particular	Amount $
Common stock	$55,000
Preferred stock	152,000
Paid-in-capital in excess of par – Common stock	174,000
Retained earnings	114,000
Non-Controlling interest	63,000
Total stockholder’s equity	$558,000