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Stockholders' Equity section of balance sheet 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: Common Stock, $10 par $400,000 Pald-In Capital from Sale of Treasury Stock-Common 30,200 Paid-In Capital in Excess or Par-Common Stock 120,000 Paid-In Capital in Excess of Par-Preferred Stock 69,600 Preferred 4% Stock, $50 par 1,160,000 Retained Earnings 2,171,400 Treasury Stock-Common 42,900 Fifty thousand shares of proferred and 200,000 shares of common stock are authorized. There are 3,900 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. Specialty Auto Racing Inc. Stockholders' Equity July 31, 20XX Preferred 4% Stock $50 Par (50,000 Shares Authorized 23,200 Shares Issued) 1.160,000 Excess of Issue Price Over Par 69,600 Pald-in capital preferred stock 1,229,600 Common Stock, $10 Par (200,000 Shares Authorized 40,000 Shares Issued) 400,000 Excess of Issue Price Over Par 120,000 520.000 30,200 Pald-in capital, common stock From Sale of Treasury Stock Total Paid-In Capital Retained Earnings 2,198,500 X 2,683,200 x Total 4.880.700 X Treasury Stock (3,200 Shares at Cost) 12.900 Total Stockholders' Equity 4,923,600 X

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