Problem - Presented below is the shareholder equity of Deems Co. at Jan. 1, 2012:
Preferred stock, $100 par, 5% 420,000
Common stock, $2 par 500,000
Additional paid in capital, common 1,800,000
Retained earnings 854,000
Other comprehensive income (23,000)
Treasury stock, 1,000 shares at cost (16,000)
Total $3,535,000
During 2012, Deems recorded the following:
2/5/2012 Declared a property dividend. The asset had a book value of $211,000 and a fair value of $243,000. Take the gain to retained earnings.
9/6/2012 Declared and distributed a 3% stock dividend on common. The market price of the stock was $19.
11/8/2012 Sold available-for-sale securities with an unrealized loss of $5,400 for $65,900. There was a realized gain of $1,200 on the sale (take to retained earnings).
12/1/2012 Resold the treasury stock for $14 per share.
12/31/2012 Declared preferred dividends for the year.
12/31/2012 Net income for the year (excluding the above items) was $101,700.
REQUIRED: Determine the ending balances in the shareholder equity accounts.