prepare the correct stockholders equity section of the balance sheet at 2009 decembe 625253
The bookkeeper of Hart Company has prepared the following incorrect statement of stockholders” equity for the year ended 2009 December 31:
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Stockholders” equity: |
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Paid-In Capital: |
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Preferred stock – 6%, cumulative (8,000 shares) |
$1,003,200 |
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Common stock – 50,000 shares |
2,856,000 |
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Total paid-in capital |
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$3,859,200 |
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Retained earnings |
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1,636,800 |
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Total stockholders” equity |
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$5,496,000 |
The authorized stock consists of 12,000 shares of preferred stock with a USD 120 par value and 75,000 shares of common stock, USD 48 par value. The preferred stock was issued on two occasions: (1) 5,000 shares at par, and (2) 3,000 shares at USD 134.40 per share. The 50,000 shares of common stock were issued at USD 62.40 per share. Five thousand shares of treasury common stock were reacquired for USD 264,000. The bookkeeper deducted the cost of the treasury stock from the Common Stock account. Prepare the correct stockholders” equity section of the balance sheet at 2009 December 31.