Problem - Whispering Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2017, the following accounts were included in stockholders' equity.
Preferred Stock, 160,200 shares $ 3,204,000
Common Stock, 1,983,000 shares 9,915,000
Paid-in Capital in Excess of Par-Preferred Stock 200,000
Paid-in Capital in Excess of Par-Common Stock 26,495,000
Retained Earnings 4,431,000
The following transactions affected stockholders' equity during 2018.
Jan. 129,300 shares of preferred stock issued at $24 per share.
Feb. 148,800 shares of common stock issued at $21 per share.
June 12-for-1 stock split (par value reduced to $2.50).
July 128,100 shares of common treasury stock purchased at $11 per share. Whispering uses the cost method.
Sept. 1510,200 shares of treasury stock reissued at $12 per share.
Dec. 31The preferred dividend is declared, and a common dividend of 55¢ per share is declared.
Dec. 31Net income is $2,103,000.
Prepare the stockholders' equity section for Whispering Company at December 31, 2018.