Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h).
-Preferred Stock = Number of Shares of Preferred Stock Issued × Par Value of Preferred Stock = 3,000 × $50 = $150,000
A)Treasury stock
B)Retained earnings
C)Preferred stock
D)Excess of issue price over par (preferred)
E)Common stock
F)Total paid-in capital
G)Excess of issue price over par (common)
H)Total stockholders' equity

Question

Quizplus · Accepted Answer

F,HPreferred stock is calculated by multiplying the number of shares issued by the par value per share. In this case, 3,000 shares of preferred stock at a $50 par value equals $150,000, which directly matches with choice C for Preferred stock. Total paid-in capital (F) typically includes the capital received from issuing both common and preferred stock, but without additional information on common stock or other components, it's not directly calculable from the given information. However, Total stockholders' equity (H) includes retained earnings, paid-in capital (from both common and preferred stock), and any other equity items. Since retained earnings and preferred stock are mentioned, it's logical to infer that these contribute to the total stockholders' equity, but the exact amount for Total paid-in capital and Total stockholders' equity cannot be precisely determined from the provided information alone. My initial response incorrectly suggested a direct calculation for F and H, which cannot be accurately done with the given data.

Assume That Retained Earnings Had a Beginning Balance of $75,000