Reference no: EM131799019

Question - Learning Objectives: Preparing stockholders' equity section of a balance sheet

Patterson Software had the following selected account balances at December 31, 2010 (in thousands, except par value per share).

Inventory                                                                                                           $ 651

Property, plant, and equipment, net                                                                      900

Paid-in capital in excess of par                                                                             899

Treasury stock, 100 shares at cost                                                                       1,150

Other stockholders' equity                                                                                   (730)*

Common stock, $0.75 par per share, 800 shares authorized, 320 shares issued       $ 240

Retained earnings                                                                                               2,220

Accounts receivable, net                                                                                      1,000

Notes payable                                                                                                     1,100

* Debit balance

Requirements -

1. Prepare the stockholders' equity section of Patterson's balance sheet (in thousands).

2. How can Patterson have a larger balance of treasury stock than the sum of Common Stock and Paid-in Capital in Excess of Par?