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Racing Cars Inc. has the following accounts and balances on April 30th, the end of the current year:
Common Stock $400,000Paid-in Capital in Excess of Par-Common Stock 120,000Paid-in Capital in Excess of Par-Preferred Stock 90,000Paid-in Capital from Sale of Treasury Stock-Common 30,000Preferred 4% Stock, $50 par 1,500,000Retained Earnings 3,900,000Treasury Stock-Common 55,000
Fifty thousand shares of preferred and 200,000 shares of common stock are authorized. Thee are 5,000 shares of common stock held as treasury stock. Prepare the Stockholders Equity section of the balance sheet as of April 30, the end of the current year.
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