Prepare in Proper Form the Stockholders' Equity Section of the Balance

question 46

Essay

Prepare in proper form the stockholders' equity section of the balance sheet from the following selected accounts and balances taken from the adjusted trial balance of Keller Corporation as of December 31,20xx.
$\begin{array}{c}\text { Partial Adiusted Trial Balance }\\ \begin{array}{|l}\hline\text { Account}\\\hline\text { Common Stock- } \$ 10 \text { par value, } 100,000 \text { shares authorized, } 55,000 \\\text { shares issued and outstanding } \\\text { Preferred Stock- } \$ 100 \text { par value, } 9 \text { percent cumulative, } 20,000 \text { shares } \\\text { authorized, 4,000 shares issued and outstanding } \\\text { Additional Paid-in Capital, Preferred } \\\text { Additional Paid-in Capital, Common } \\\text { Retained Earnings }\end{array} \begin{array}{|r|r|}\hline \text { Debit} &\text { Credit }\\\hline\\&550,00\\\\&400,000 \\&15,000 \\&400,000 \\&90,000\end{array} \\\hline\end{array}$

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Definitions:

Producer Surplus

is the difference between the amount producers are willing to accept for a good or service versus what they actually receive.

Consumer Surplus

The discrepancy between the sum consumers are ready and able to spend on a good or service and the sum they end up paying.

Consumer Surplus

The distinction between the expected total consumer spending on a product or service and the real total paid.

Trade

The exchange of goods, services, or both between two parties, whether within the interior of a country or across international borders.