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Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts...

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Accounting

Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing on July 31, the end of the current year:

1

Common Stock, $34 par

$9,418,000.00

2

Paid-In Capital from Sale of Treasury Stock-Common

359,000.00

3

Paid-In Capital in Excess of Par-Common Stock

1,939,000.00

4

Paid-In Capital in Excess of Par-Preferred Stock

284,700.00

5

Preferred 1% Stock, $150 par

7,117,500.00

6

Retained Earnings

76,839,200.00

7

Treasury Stock-Common

860,000.00

Fifty thousand shares of preferred and 300,000 shares of common stock are authorized. There are 20,000 shares of common stock held as treasury stock.

Prepare the Stockholders Equity section of the balance sheet as of July 31, the end of the current year, using Method 1 of

Exhibit 9

. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

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