On December 31, 2009, Milo Company had 1,300,000 shares of $5 par common stock issued and outstanding.

Question:

On December 31, 2009, Milo Company had 1,300,000 shares of $5 par issued and outstanding. The stockholders’ equity accounts at December 31, 2009, had the balances listed here.
Common Stock ........$6,500,000
Additional Paid-in Capital ....1,800,000
Retained Earnings ........1,200,000
Transactions during 2010 and other information related to stockholders’ equity accounts were as follows.
1. On January 10, 2010, issued at $109 per share 120,000 shares of $100 par value, 8% cumulative preferred stock.
2. On February 8, 2010, reacquired 20,000 shares of its for $11 per share.
3. On June 8, 2010, declared a cash of $1.20 per share on the outstanding, payable on July 10, 2010, to stockholders of record on July 1, 2010.
4. On December 9, 2010, declared the yearly cash on preferred stock, payable January 10, 2011, to stockholders of record on December 15, 2010.
5. Net income for the year was $3,600,000.
Instructions
Prepare the stockholders’ equity section of Milo’s at December 31, 2010.

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