Wiley GAAP 2008

Appendix A Financial Statement Presentation

This appendix provides an illustration of the various financial statements that may be required to be presented and are related to the stockholders' equity section of the balance sheet.

Stockholders' Equity Section of a Balance Sheet
Capital stock:
Preferred stock, $100 par, 7% cumulative, 30,000 shares authorized, issued, and outstanding		$ 3,000,000
Common stock, no par, stated value $10 per share, 500,000 shares
authorized, 415,000 shares issued		4,150,000
Total capital stock		$ 7,150,000
Additional paid‐in capital:
Issued price in excess of par value‐preferred	$ 150,000
Issued price in excess of stated value‐common	845,000	995,000
Total paid‐in capital		$ 8,145,000
Donated capital		100,000
Retained earnings:
Appropriated for plant expansion	$2,100,000
Unappropriated	2,110,000	4,210,000
Accumulated other comprehensive income		165,000
Total capital, retained earnings, and accumulated other comprehensive income		$12,620,000
Less 10,000 common shares held in treasury, at cost		(120,000)
Total stockholders' equity		$12,500,000
Retained Earnings Statement
Balance at beginning of year, as reported		$ 3,800,000
Prior period adjustment‐correction of an error in method of depreciation(less tax effect of $77,000)		115,000
Balance at beginning of year, restated		$ 3,915,000
Net income for the year		583,000
Cash dividends declared during the year
Preferred stock		(210,000)
Common stock		(78,000)
Balance at end of year		$ 4,210,000

Table . 19-1: Statement of Changes in Stockholders' ...