Record stock transactions, prepare equity section of balance sheet, and calculate ratios. (LO 1, 2, 3, 5, 6)

On January 1, 2007, the Expedite Corporation's shareholders' equity account balances were as follows.

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a. Show each of the transactions in the accounting equation.

b. Prepare the shareholders' equity section of the balance sheet at December \(31,2007\).

c. Calculate earnings per share and return on common stockholders' equity.

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Preferred stock (6%, $100 par noncumulative, 25,000 shares authorized) Common stock ($5 par value, 8,000,000 shares authorized) Additional paid-in capital, preferred stock Additional paid-in capital, common stock Retained earnings Treasury stock-common (5.000 shares, at cost) $ 500,000 4,500,000 20,000 6.300,000 20,380,000 During 2007, Expedite Corporation engaged in the following transactions. Jan. 5 Feb. 9 June 1 Dec. 1 70.000 Issued 10,000 shares of common stock for $15 per share Purchased 2,000 additional shares of common treasury stock at $13 per share Declared the annual cash dividend on preferred stock, payable June 30 Declared a $0.25 per share cash dividend to common stockholders payable December 31, 2007 Net income for the year was $2,330,000.