Prepare equity section of balance sheet.
On October 1, 2006, Marble Company had 400,000 shares of $2 par common stock issued and outstanding. The shareholders' equity accounts at October 1, 2006, had the following balances.
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Common stock
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$ 800,000
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Additional paid-in capital
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2,400,000
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Retained earnings
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9,800,000
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The following transactions occurred during the fiscal year ended September 30, 2007.
1. On October 30, issued 30,000 shares of 9%, $100 par, cumulative prefen-ed stock at $102.
2. On November 30, reacquired 8,000 shares of common stock for $8.50 per share.
3. On December 1, declared a cash dividend of $0.45 per share on the common stock out standing, payable on December 31, 2006, to shareholders of record on November 15.
4. Paid dividends to preferred shareholders on December 31 , 2006.
5. Net income for the year ended September 30, 2007, was $3,875,000.
Required
Prepare the shareholders' equity section of Marble's balance sheet at September 30, 2007.