Question

Stowe Company’s December 31, 2017, trial balance includes the following accounts: Investment in Common Stock \(70,000, Retained Earnings \)114,000, Trademarks \(31,000, Preferred Stock \)152,000, Common Stock \(55,000, Deferred Income Taxes \)88,000, Paid-in Capital in Excess of Par—Common Stock \(174,000, and Noncontrolling Interest \)63,000. Prepare the stockholders’ equity section of the balance sheet.

Short answer

The stockholder’s equity section of the balance sheet totals$558,000.

Step-by-step solution

Definition of Additional Paid-in-Capital

The excess amount received by the business entity for issuing shares in excess of the par value of the shares is reported in the accounts as additional paid-up capital under the equity side of the balance sheet.

Stockholder’s Equity Section

Particular	Amount $
Common stock	$55,000
Preferred stock	152,000
Paid-in-capital in excess of par – Common stock	174,000
Retained earnings	114,000
Non-Controlling interest	63,000
Total stockholder’s equity	$558,000