Bellezone Corporation's December 31 2017 balance sheet showed the following: 8% preferred stock $20 par value cumulative 20000 shares $\begin{array}{lr}
\text {authorized; 15,000 shares issued}& \$ 300,000 \
\text {Common stock, $ \$ 10 $ parvalue, 2,000,000 shares authorized;}&\
\text {$ 1,950,000 $ shares issued, $ 1,920,000 $ shares outstanding}&19,500,000\
\text { Paid-in capital in excess of par-preferred stock } & 60,000 \
\text { Paid-in capital in excess of par-common stock } & 27,000,000 \
\text { Retained earnings } & 7,500,000 \
\text { Treasury stock (30,000 shares) } & 630,000
\end{array}$ Bellezone's total stockholders' equity was

Question

Quizplus · Accepted Answer

The total stockholders' equity is calculated by adding the values of preferred stock, common stock, paid-in capital in excess of par for both preferred and common stock, and retained earnings, then subtracting the cost of treasury stock. Calculation: $300,000 (preferred stock) + $19,500,000 (common stock) + $60,000 (paid-in capital in excess of par-preferred) + $27,000,000 (paid-in capital in excess of par-common) + $7,500,000 (retained earnings) - $630,000 (treasury stock) = $53,730,000 - $630,000 = $53,100,000.

Bellezone Corporation's December 31 2017 Balance Sheet Showed the Following