E11-9 The following stockholders’ equity accounts, arranged alphabetically, are in the

ledger of Marvel Corporation at December 31, 2007.
Common Stock ($5 stated value) $1,500,000
Paid-in Capital in Excess of Par Value—Preferred Stock 45,000
Paid-in Capital in Excess of Stated Value—Common Stock 1,050,000
Preferred Stock (8%, $100 par, noncumulative) 500,000
Retained Earnings 1,134,000
Treasury Stock—Common (8,000 shares) 78,000
Instructions
Prepare the stockholders’ equity section of the balance sheet at December 31, 2007

To prepare the stockholders' equity section of the balance sheet, we need to gather the relevant information and organize it properly.

1. Common Stock ($5 stated value): The stated value is $5 per share. The total Common Stock amount is $1,500,000. This means there are 300,000 shares of common stock issued ($1,500,000 / $5).

2. Paid-in Capital in Excess of Par Value—Preferred Stock: The Preferred Stock has a par value of $100 per share. The amount in excess of the par value for the Preferred Stock is $45,000.

3. Paid-in Capital in Excess of Stated Value—Common Stock: The Common Stock has a stated value, not a par value. The amount in excess of the stated value for the Common Stock is $1,050,000.

4. Preferred Stock (8%, $100 par, noncumulative): The Preferred Stock has a par value of $100 per share, and it pays an 8% annual dividend. The total Preferred Stock amount is $500,000.

5. Retained Earnings: The retained earnings amount is $1,134,000.

6. Treasury Stock—Common: There are 8,000 shares of treasury stock for the Common Stock, and the amount is $78,000.

Now, we can prepare the stockholders' equity section of the balance sheet at December 31, 2007:

Stockholders' Equity:
Common Stock ($5 stated value) $1,500,000
Paid-in Capital in Excess of Stated Value—Common Stock $1,050,000
Preferred Stock (8%, $100 par, noncumulative) $500,000
Paid-in Capital in Excess of Par Value—Preferred Stock $45,000
Retained Earnings $1,134,000
Less: Treasury Stock—Common ($78,000)
Total Stockholders' Equity $3,151,000

Note: The treasury stock is deducted from the retained earnings as it represents the cost of repurchased shares.

To prepare the stockholders' equity section of the balance sheet at December 31, 2007, we need to calculate the balances of each account and present them in an organized manner.

1. Common Stock ($5 stated value): The balance of the common stock account is given as $1,500,000. This represents the total par value of the common stock issued.

2. Paid-in Capital in Excess of Par Value—Preferred Stock: The balance of this account is given as $45,000. This represents the amount received from investors for the preferred stock issued above its par value.

3. Paid-in Capital in Excess of Stated Value—Common Stock: The balance of this account is given as $1,050,000. This represents the amount received from investors for the common stock issued above its stated value.

4. Preferred Stock (8%, $100 par, noncumulative): The balance of the preferred stock account is given as $500,000. This represents the total par value of the preferred stock issued.

5. Retained Earnings: The balance of the retained earnings account is given as $1,134,000. This represents the cumulative net income retained by the company over time.

6. Treasury Stock—Common: The balance of the treasury stock—common account is given as $78,000. This represents the cost of the company's own common shares that have been repurchased and are held as treasury stock.

Now, let's prepare the stockholders' equity section:

Stockholders' Equity:
Common Stock ($5 stated value) $1,500,000
Paid-in Capital in Excess of Stated Value—Common Stock $1,050,000
Preferred Stock (8%, $100 par, noncumulative) $500,000
Paid-in Capital in Excess of Par Value—Preferred Stock $45,000
Retained Earnings $1,134,000
Treasury Stock—Common $78,000

Total Stockholders' Equity $4,307,000

This represents the stockholders' equity section of the balance sheet at December 31, 2007.