On December 31, 2016, Jons Company had 1,300,000 shares of $5 par common stock issued and outstanding.

Question:

On December 31, 2016, Jons Company had 1,300,000 shares of $5 par common stock issued and outstanding. At December 31, 2016, stockholders' equity had the amounts listed here.

Common Stock ........................................ $6,500,000

Additional Paid-in Capital ...........................1,800,000

Retained Earnings .....................................1,200,000

Transactions during 2017 and other information related to stockholders' equity accounts were as follows.

1. On January 10, 2017, issued at $107 per share 120,000 shares of $100 par value, 9% cumulative preferred stock.

2. On February 8, 2017, reacquired 15,000 shares of its common stock for $11 per share.

3. On May 9, 2017, declared the yearly cash dividend on preferred stock, payable June 10, 2017, to stockholders of record on May 31, 2017.

4. On June 8, 2017, declared a cash dividend of $1.20 per share on the common stock outstanding, payable on July 10, 2017, to stockholders of record on July 1, 2017.

5. Net income for the year was $3,600,000.

Instructions

Prepare the stockholders' equity section of Jons' balance sheet at December 31, 2017.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...