The Stockholders’ Equity section of the balance sheet of Peters P.O. Z,4,S,6,7 Western Wear, Inc., as of January 1 is as follows:

Some of the transactions that took place during the year are:

Instructions 1. Enter in the ledger accounts the balances appearing in the Stockholders’
Equity section of the balance sheet as of January 1. In the Item column of the stock accounts, record the word Balance on the first line and the number of shares on the second line.
2. Journalize entries in general journal form to record the transactions that occurred during the year and post to the stockholders’ equity accounts.
3. Prepare the Stockholders’ Equity section of the balance sheet as of December 31.

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May 10 Declared the regular semiannual $4.50 per share dividend on the pre- ferred stock and a $1.30 per share dividend on the common stock to stockholders of record as of June 1, payable on June 10. June 2 Received subscriptions to 9,000 shares of common stock at $27 per share, collecting 70 percent of the subscription price. 10 Paid cash dividends declared on May 10. 26 Subscribers to 9,000 shares of common stock paid the remaining 30 percent of the subscription price; Peters Western Wear then issued the 9,000 shares. Nov. 10 Declared the regular semiannual $4.50 per share dividend on the pre- ferred stock and a $1.50 per share dividend on the common stock to stockholders of record as of December 1, payable on De- Dec. 10 27 cember 10. Paid cash dividends declared on November 10. Declared a 5 percent stock dividend on common stock outstanding to stockholders of record as of January 14, payable on January 30. Current market value of the stock is $28 per share. 31 Increased the appropriation for expansion by $50,000. 31 After the accountant has closed all revenue, expense, and Income Tax Expense accounts, the Income Summary account has a credit balance of $333,000. Closed the Income Summary account.