Chapter 5, Problem 10BE

To determine

Common stock: Common stock provides ownership to the holder of the instrument. Paid-in capital in excess of par is amount invested in a stock in excess of the face value of the stock. Retained earnings is earning not distributed to the shareholders in form of dividends, but retained with a purpose of reinvestment or to discharge debt. Other accumulated comprehensive loss account incorporates unrealized gains and losses. Noncontrolling interest refers to equity investment in a subsidiary company which is not directly or indirectly attributable to a parent company.

To prepare: To prepare the stockholders’ equity section as shown in the balance sheet.