The following accounts and their balances appear in the ledger on December 31 of the current year: Common Stock, $20 par $400,000 Paid-In Capital in Excess of Par 44,000 Retained Earnings 265,000 Treasury Stock 20,000 Prepare the Stockholders' Equity section of the balance sheet as of December 31. Twenty five thousand shares of common stock are authorized, and 1,000 shares have been reacquired.

The total of equity shareholders' funds is $689,000 as shown below.

Explanation:

The stockholders' equity section of the balance sheet comprises of common stock par value,paid-in capital in excess of par,treasury stock,retained earnings.

All of the above-listed items make up the shareholders' stake in the business,before the addition of both non-current and current liabilities:

                        Stockholders'equity

Common stock par value   of $20,25,000 authorized,20,000 issued,19000 outstanding                                                                                      $400,000

Paid-in capital in excess of par value                                               $44,000

Total paid capital                                                                              $444,000

Retained earnings                                                                            $265,000

Total paid-in capital and retained earnings                                    $709,000

less treasury stock (1000*$20 par value)                                        ($20,000)

Total equity shareholders' funds                                                      689,000

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