Exercise 8-26 practice problems

Exercise 8-26 practice problems

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Exercise 8-26
Stockholders’ Equity Section of Balance Sheet
Premium Imports Inc. retails racing products for BMWs, Porsches, and Ferraris. The following
accounts and their balances appear in the ledger of Premium Imports Inc. on November 30,
the end of the current year:
Common Stock, $8 par
$3,200,000
Paid-In Capital in Excess of Par—–Common Stock
700,000
Paid-In Capital in Excess of Par—–Preferred Stock
182,000
Paid-In Capital from Sale of Treasury Stock—–Common
150,000
Preferred 2% Stock, $80 par
2,080,000
Retained Earnings
17,250,000
Treasury Stock—–Common
744,000
Forty thousand shares of preferred and 500,000 shares of common stock are authorized. There are
62,000 shares of common stock held as treasury stock.
Prepare the Stockholders’ Equity section of the balance sheet as of November 30, the end of the current year.

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