Prepare equity section of the balance sheet.
The following account balances can be found in the general ledger of Abco Corporation at year-end. Prepare the shareholders' equity section of the balance sheet.
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Retained earnings
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$ 870,000
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Treasury stock (8,000 common shares at cost)
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64,000
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Common stock ($1 par, 600,000 shares authorized,
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200,000 shares issued)
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200,000
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Additional paid-in capital, common stock
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1,500,000
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Preferred stock ($10 par value, 9%, 80,000 shares authorized,
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15,000 shares issued)
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150,000
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Additional paid-in capital, preferred stock
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45,000
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