Hoyle Corporation has issued 100,000 shares of $5 par value common stock. It was authorized 500,000 shares. The paid-in capital in excess of par value on the common stock is $263,000. The corporation has reacquired 7,000 shares at a cost of $46,000 and is currently holding those shares. It also had accumulated other comprehensive income of $67,000. The corporation also has 2,000 shares issued and outstanding of 9%, $100 par value preferred stock. It authorized 10,000 shares. The paid-in capital in excess of par value on the preferred stock is $23,000. Retained earnings is $372,000.

Answer and Explanation:

The preparation of the stockholder equity is presented below:

Hoyle Corporation

Partial Balance sheet

Shareholder equity:

Capital stock

Common stock     $500,000

Preferred stock     $200,000

Total capital stock $700,000

Additional paid in capital

Paid in capital in excess of common stock $263,000

Paid in capital in excess of par preferred stock $23,000

Total paid in capital $986,000

retained earnings $372,000

Total paid in capital and retained earnings $1,358,000

Accumulated other comphrensive income $67,000

Less: Treasury stock  -$46,000

Total stockholder equity $1,379,000

answer founder's agreement;