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Posted: October 30th, 2023
Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris
Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing Inc. on July 31, the end of the current year:Common Stock, $36 par.................................................$10,080,000Paid-In Capital from Sale of Treasury StockâCommon ...................340,000Paid-In Capital in Excess of ParâCommon Stock .........................420,000Paid-In Capital in Excess of ParâPreferred Stock .........................384,000Preferred 1% Stock, $150 par ............................................7,200,000Retained Earnings ......................................................71,684,000Treasury StockâCommon ..............................................1,008,000Fifty thousand shares of preferred and 300,000 shares of common stock are authorized. There are 24,000 shares of common stock held as treasury stock.Prepare the Stockholdersâ Equity section of the balance sheet as of July 31, the end of the current year using Method 1 of Exhibit 6.
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