Question - Learning Objectives: Preparing stockholders' equity section of a balance sheet
Patterson Software had the following selected account balances at December 31, 2010 (in thousands, except par value per share).
Inventory $ 651
Property, plant, and equipment, net 900
Paid-in capital in excess of par 899
Treasury stock, 100 shares at cost 1,150
Other stockholders' equity (730)*
Common stock, $0.75 par per share, 800 shares authorized, 320 shares issued $ 240
Retained earnings 2,220
Accounts receivable, net 1,000
Notes payable 1,100
* Debit balance
Requirements -
1. Prepare the stockholders' equity section of Patterson's balance sheet (in thousands).
2. How can Patterson have a larger balance of treasury stock than the sum of Common Stock and Paid-in Capital in Excess of Par?