How is the stockholders' equity section of a corporate balance sheet different from that in a single-owner business?

Answer 1

Stockholders' equity is to a corporation what owner's equity is to a sole proprietorship.

Owners of a corporation are called stockholders (or shareholders), because they own (or hold) shares of the company's stock. Stock certificates are paper evidence of ownership in a corporation.

For sole proprietorship stocks usually are not issued.

Examples of stockholders' equity accounts include:

- Common Stock

- Preferred Stock

- Paid-in Capital in Excess of Par Value

- Paid-in Capital from Treasury Stock

- Retained Earnings

- Etc.

Both owner's equity and stockholders' equity accounts will normally have CREDIT balances.

How stockholders' equity is reflected in the balance sheet?

The stockholders' equity section of a corporation's balance sheet is:

- Paid-in Capital

- Retained Earnings

- Treasury Stock

The stockholders' equity section of a corporation's balance sheet is:

STOCKHOLDERS' EQUITY

Paid-in Capital

..Preferred Stock

..Common Stock

..Paid-in Capital in Excess of Par Value - Preferred Stock

..Paid-in Capital in Excess of Par Value - Common Stock

..Paid-in Capital from Treasury Stock

Retained Earnings

Less: Treasury Stock

..TOTAL STOCKHOLDERS' EQUITY