EXERCISE 11-11
Purpose: (L.O. 7) This exercise will allow you to practice preparing the stockholders' equity section of a corporation's balance sheet and the accompanying note disclosures.
The following accounts appear in the ledger of Zippadeedoda, Inc. after the books are closed at December 31, 2014.
Instructions
Prepare the stockholders' equity section of the balance sheet at December 31, 2014, assuming retained earnings is restricted for two reasons: (1) the cost of the treasury shares held, and (2) $175,000 for future plant expansion.
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