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The following stockholders' equity accounts, arranged alphabetically, are in the ledger of Culver Corporation at December 31, 2017. Common Stock ($4 stated value) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Preferred Stock (896, $100 par, noncumulative) Retained Earnings Treasury Stock (20,400 common shares) $2,720,000 76,500 1,785,000 1,020,000 2,267,800 122,400
The following stockholders' equity accounts, arranged alphabetically, are in the ledger of Culver Corporation at December 31, 2017. Common Stock ($4 stated value) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Preferred Stock (896, $100 par, noncumulative) Retained Earnings Treasury Stock (20,400 common shares) $2,720,000 76,500 1,785,000 1,020,000 2,267,800 122,400
Treasury stock is stock that has been reacquired by a corporation. A corporation might repurchase some of its shares when it believes that the stock is undervalued, or it may do so in order to pay dividends to itsstockholders.Treasury stockis stock that has been reacquired by a corporation. A corporation might repurchase some of its shares when it believes that the stock is undervalued, or it may do so in order to pay dividends to its stockholders. The following stockholders' equity accounts, arranged alphabetically, are in the ledger of Culver Corporation at December 31, 2017. Common Stock ($4 stated value) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Preferred Stock (896, $100 par, noncumulative) Retained Earnings Treasury Stock (20,400 common shares) $2,720,000 76,500 1,785,000 1,020,000 2,267,800 122,400. The amount listed in the account "Treasury Stock" represents the cost of the stock repurchased by Culver Corporation. Treasury Stock is considered a contra-equity account. This means that it is subtracted from the other accounts in the equity section of the balance sheet, including Common Stock, Preferred Stock, and Retained Earnings.Therefore, the Stockholders'equityof Culver Corporation at December 31, 2017, is as follows: Common Stock ($4 stated value) = $2,720,000; Preferred Stock (896, $100 par, noncumulative) = $1,020,000; Paid-in Capital in Excess of Par Value-Preferred Stock = $76,500; Paid-in Capital in Excess of Stated Value-Common Stock = $1,785,000; Retained Earnings = $2,267,800; Treasury Stock (20,400 common shares) = $122,400. In conclusion, the Stockholders' equity of Culver Corporation at December 31, 2017, was $7,012,700 (the sum of all the accounts mentioned above), and this amount must be reported on the balance sheet as part of the company's liabilities and equity.To know more aboutstockholdersvisit:brainly.com/question/18523103#SPJ11...