Prepare a statement of stockholders' equity for the year ended December 31, 2011, assuming these transactions occurred in sequence in 2011
- Contributed capital
- Common stock, $2 par value, 500,000 shares
- authorized, 400,000 shares issued and outstanding $800,000
- Additional paid-in capital $1,200,000
- Total contributed $2,000,000
- Retained earning $4,200,000
- Total stockholder's equity $6,200,000
a.Issued 10,000 shares of $100 par value, 9 percent cumulative preferred stock at par after obtaining authorization from the state.
b.Issued 40,000 shares of common stock in connection with the conversion of bonds having a carrying value of $600,000.
c.Declared and issued a 2 percent common stock dividend. The market value on the date of declaration was $14 per share.
d.Purchased 10,000 shares of common stock for the treasury at a cost of $16 per share.
e.Earned net income of $460,000.
f.Declared and paid the full-year's dividend on preferred stock and a dividend of $0.40 per share on common stock outstanding at the end of the year.
g.Had foreign currency translation adjustment of negative $100,000.
- Issuance of 8,800 common shares in a stock dividend
- Cash dividends for perferred and common