The following accounts appear in the ledger of Oriole Company after the books are closed at December 31, 2020.

Common Stock, no par, $2 stated value, 393,000 shares authorized; 284,000 shares issued $ 568,000

Common Stock Dividends Distributable 25,000

Paid-in Capital in Excess of Stated Value-Common Stock 1,110,000

Preferred Stock, $5 par value, 8%, 38,000 shares authorized; 28,700 shares issued 143,500

Retained Earnings 758,000

Treasury Stock (13,800 common shares) 96,600

Paid-in Capital in Excess of Par-Preferred Stock 343,000

Accumulated Other Comprehensive Loss 34,500

Prepare the stockholders' equity section at December 31, 2020, assuming retained earnings is restricted for plant expansion in the amount of $112,000. For capital stock first enter the preferred stock details.

Answer and Explanation:

The preparation of the stockholders' equity section at December 31, 2020 is presented below:

Oriole Company

Stockholders' equity section

December 31, 2020

Particulars Amount

Stockholder equity:

Paid in capital:

Capital Stock

Preferred stock $143,500

Common Stock dividend $568,000

Common Stock Dividends Distributable $25,000 $593,000

Total capital stock $736,500

Additional paid in capital

Paid-in Capital in Excess of Par - Preferred Stock $343,000

Paid-in Capital in Excess of Stated Value - Common Stock $1,110,000

Total paid in capital $2,189,500

Add: Retained earnings $758,000

Total paid in capital and retained earnings $2,947,500

Less: Treasury stock - $96,600

Less: Accumulated Other Comprehensive Loss - $34,500

Total Stockholder equity $2,816,400

We deduct the treasury stock and the accumulated other comprehensive loss and rest items are added so that the total stockholder equity could arrive

15.02

Explanation:

because of the section