Whispering Winds Corp. has these accounts at December 31: Common Stock, $12 par, 6,100 shares issued, $73,200; Paid-in Capital in Excess of Par Value $19,600; Retained Earnings $44,600; and Treasury Stock, 560 shares, $12,320. Required:
Prepare the stockholders’ equity section of the balance sheet.

The answer is $125,080.

Explanation:

Common stock = $73,200($12 par x 6,100 shares)

Paid-in Capital = $19,600

Retained Earnings = $44,600;

Treasury Stock = $12,320( for 560 shares).

The stockholders’ equity is therefore :

$73,200 + $19,600 + $44,600 - $12,320

= $125,080.

NOTE: Treasury stock was subtracted from the rest because treasury stocks reduce the total number of stocks outstanding