Chapter 10, Problem 43BE

Disclosing stockholders’ equity on a balance sheet (Learning Objective 7) 10-15 min.

Patterson Manufacturing Co. has the following selected account balances at September 30, 2018:

Common Stock, no par with $9 stated value, 90,000 shares authorized, issued, and outstanding......... $810,000 Accumulated Depreciation, Machinery and Equipment... 51,000 Retained Earnings................... 130,000

Inventory................................. $146,000 Machinery and Equipment......... 85,000 Preferred Stock, 3%, $12 par, 20,000    shares authorized, 4,000    shares issued and outstanding........................ 48,000 Paid-in Capital in Excess of Stated Value—Common......... 95,000 Cost of Goods Sold................. 81,000

Requirement

1. 1. Prepare the stockholders' equity section of the company's balance sheet.