Amado Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At Dec. 31, 2007, the accounts were included in stockholders' equity.
Preferred stock, 150,000 shares $3,000,0000
Common stock, 2,000,000 shares $10,000,000
Paid-in Capital in excess of Par-Preferred $200,000
Paid-in capital in excess of Par-common $27,000,000
Retained earning $4,500,000
The following transactions affected stockholders' equity during 2008:
Jan 1--25,000 shares of preferred stock issued at $22 per share.
Feb1---40,000 shares of common stock issued at $20 per share.
Jun 1--2-for-1 stock split )par value reduced to $2.50)
July 1--30,000 shares of common treasury stock purchased at $9 per share. Amado uses the cost method.
Sept 15--10,000 shares of treasury stock reissued at $11 per share.
Dec. 31--The preferred dividend is declared, and a common dividend of 50 cents per share is declared.
Dec. 31--Net income is $2,100,000
Prepare the stockholders' equity section for Amado Co. at Dec. 31, 2008. Show all supporting computations.