The stockholder's equity section of Ruff Corporation's balance sheet on Dec. 31, 2007, follows.
Contributed Capital
Common Stock, $2 parvalue, $250,000 shares
authorized, 200,000 shares issued and
outstanding $400,000
Additional paid-incapital $600,000
Total Contributedcapital $1,000,000
Retained earnings $2,100,000
Total stockholder's equity $3,100,000
Prepare a statement of stockholder's equity for the year ended December 31, 2008, assuming these transactions occurred in sequencein 2008.
a.) Issued 5,000 shares of $100 parvalue, 9% cumulative preferred stock at par after obtaining authorization from the state.
b.) Issued 20,000 shares of common stock in connection with the conversion of bonds having a carrying value of $300,000.
c.) Declared and issued a 2% common stock dividend. The market value on the date of decleration was $14 per share.
d.) Purchased 5,000 shares of common stock for the treasury at a cost of $16 per share.
e.) Earned net income of $230,000.
f.) Declared and paid the full year's dividend on preferred stock and a dividend of $.40 per share on common stock outstanding at the end of the year.
g.) Had foreign currency translation adjustment of minus $50,000.