whats the answer for preparing the equity section SolutionAn

whats the answer for preparing the equity section ?

Solution

Answer:

1

Account/Description

Debit

Credit

1

Land

136000

        Preferred stock

121540

        Paid-in cap. in excess of par value-Pref. stock

14,460

2

Cash

2817276

        Paid-in cap. in excess of stated value-Comm. stock

958976

        Common stock

1858300

3

Treasury stock-Common

12150

        Cash

12150

4

Cash

4950

        Treasury stock-Common

4050

        Paid-in cap. from treasury stock

900

2

Marigold Limited

statement of financial Position(partial)

Stockholders\' equity

    Paid-in capital

  Capital stock

10% Preferred stock

121540

Common stock, no par

958976

Total capital stock

1080516

Additional paid-in capital

In excess of par value-preferred stock

$14,460

In excess of stated value common stock

1858300

From treasury stock-common

900

Total additional paid-in capital

$1,873,660

Total paid-in capital

$2,954,176

Retained earnings

81300

Total paid-in capital and retained earnings

$3,035,476

Less: Treasury stock

-8100

Total stockholders\' equity

$3,027,376

	Account/Description	Debit	Credit
1	Land	136000
	Preferred stock		121540
	Paid-in cap. in excess of par value-Pref. stock		14,460
2	Cash	2817276
	Paid-in cap. in excess of stated value-Comm. stock		958976
	Common stock		1858300
3	Treasury stock-Common	12150
	Cash		12150
4	Cash	4950
	Treasury stock-Common		4050
	Paid-in cap. from treasury stock		900