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Financial Accounting

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Doate Mystery Amount Stockholder's Equity

FINACT-3XFUN0

Doate Inc. has the following balances at the end of Year 5:

Stockholder's Equity Section:
7% Preferred stock, \$50 par value, 5,000,000 shares authorized
700 shares issued, cumulative, nonparticipating, callable at par \$ — ? —
Paid in capital in excess of par, preferred stock \$45,000
Common stock, \$10 par value, 6,000,000 shares authored, 20,000 shares issued \$600,000
Paid in capital, in excess of par, common stock \$240,000
Retained earnings \$750,000

What is the amount the total in the Preferred Stock, par account in the above equity section of the balance sheet and how do you know this amount?

The reported amount in the preferred stock par account is

because the par account must always contain

times

.