The Stockholders€™ Equity section of the balance sheets for Klee Corporation on December 31, 2018, and December 31, 2019, along with other selected account balances on the two dates is provided below. (Certain information is missing from the statements.) In 2019, the following transactions affecting equity occurred:
a. Additional shares of common stock were issued in April. No other common stock was issued during the year.
b. A cash dividend of $1 per share was declared and paid on common stock in December.
c. The Treasury Stock€”Preferred was purchased at par in January.
d. Additional preferred stock was issued for cash in July.
e. The yearly cash dividend of $1 per share was declared and paid on preferred stock outstanding as of December 3, 2019.

INSTRUCTIONS
Answer the following questions about transactions in 2019:
1. How many shares of preferred stock were outstanding at year-end?
2. How many common stock shares were outstanding at year-end?
3. How many shares of preferred stock were purchased as treasury stock?
4. How many shares of preferred stock were issued for cash?
5. What was the sales price per share of the preferred stock issued?

6. What was the total cash dividend on preferred stock?
7. What was the total cash dividend on common stock?

Analyze: What is the yearly dividend reduction because of the treasury stock purchase?

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2019 2018 Stockholders' Equity Paid-in Capital Preferred Stock (5 percent, $20 par, authorized 20,000 shares) $ 80,000 $ 60,000 Issued Paid-in Capital in Excess of Par Value-Preferred Common Stock ($ 10 par value, 200,000 shares authorized) 500 -0- Issued 750,000 500,000 Paid-in Capital in Excess of Par Value-Common 10,000 $ 840,500 $ 560,000 Total Paid-in Capital Retained Earnings $ 100,000 $ 100,000 Appropriated for Plant Expansion 40,000 Appropriated for Treasury Stock --0- 600,000 $ 700,000 Unappropriated 640,000 $ 780,000 Total Retained Earnings $1,620,500 $1,260,000 Less Treasury Stock–Preferred 10,000 -0- Total Stockholders' Equity $1,610,500 $1,260,000