Stockholders’ Equity:

Capital stock—10,000 shares of $10 par value authorized: $ 50,000
5,000 shares issued and outstanding
Capital contributed in excess of par value of capital stock 32,580
Retained earnings 47,320
Total stockholders’ equity $129,900

Pate Corporation was founded in 1985. The corporation has 10 stockholders and serves as its own registrar and transfer agent. There are no capital stock subscription contracts in effect.

Required

a. Prepare the detailed audit plan for the examination of the three accounts composing the stockholders’ equity section of Pate Corporation’s balance sheet. Organize the audit plan under broad financial statement assertions. (Do not include in the audit plan for the audit of the results of the current year operations.)