Common Stock, $10 par value $300,000 Paid-in Capital in excess of par-common 200

Stockholders equity/Paid in Capital and Balance Sheet

Common Stock, $10 par value $300,000
Paid-in Capital in excess of par-common 200.000
Retained Earnings 225,000
Preferred Stock, $50 par value 150,000
Paid-in Capital in excess of par-preferred 30,000

What is the total stockholders equity?

Beemer Corporation organized on January 1, 20X3. Beemer has authorization for 90,000shares of $10 par value common stock. As of December 31, 20X3. Beemer has issued 50,000 shares of its common stock at an average issuance price of $12. Beemer also has authorization for 50,000 shares of 5%, $50 par value, noncumulative preferred stock. As of December 31, 20X3, Beemer has issued 10.000 shares of preferred stock at an average issuance price of $70 per share. Beemer reports net income of $47,000 for its first year of operations ended in December31, 20X3.

Prepare the stockholders' equity section of the balance sheet for Beemer Corporation dated December 31, 20X3.

Please be as detailed as possible

The given information is the stockholders' equity section on January 1, 20X3. After which, additional common stock and preferred is being issued. It would be easier to prepare the new
stockholders' equity section on December 31, 20X3 if we prepare journal entries for the stock issuance for both types of stock as follows: -

Cash ($12 x 50,000 shares) 600,000
Common Stock ($10 x 50,000 shares) 500,000
Paid-in Capital in excess of par-common 100,000

Cash ($70 x 10,000 shares) 700,000
Preferred Stock ($50 x 10,000 shares) 500,000
Paid-in Capital in excess of par-preferred 200,000

Then, for the net income, it will be added to the balance of retained earnings. We will get the new balance of retained earnings as follows: -

225,000 + 47,000 = 272,000

The paid-in capital in excess of par for both common and preferred stock must also be recalculated for new balance by adding the new amount of paid-in to the beginning balance.

Paid-in Capital in excess of par-common 200.000
Add: new amount 100,000
Ending balance 300,000

Paid-in Capital in excess of par-preferred 30,000
Add: new amount 200,000
Ending balance 230,000

In addition, you need to find the new balance of how many shares have been issued for both common and preferred stock

Common Stock, $10 par value $300,000 = 30,000 shares
Add: New issued 50,000 shares
Ending balance 80,000 shares

Preferred Stock, $50 par value 150,000 = 3,000 shares
Add: New issued 10,000 shares
Ending balance 13,000 shares

Then, we would be able to prepare the stockholders' equity section as follows: -

Preferred stock, 5%, $50 par (50,000 shares authorized, 650,000
13,000 shares issued)
Common stock, $10 par (90,000 shares authorized, 800,000
80,000 shares issued)
Additional paid-in capital:
Paid-in Capital in excess of par-common 300,000
Paid-in Capital in excess of par-preferred 230,000
Retained Earnings 272,000
Total stockholders' equity 2,252,000