Madrid Jewelry Company reported the following summarized balance sheet at December 31, 2021: 

During 2022, Madrid Jewelry completed these transactions that affected stockholders’ equity: 

Requirements 

1. Journalize Madrid Jewelry’s transactions. Explanations are not required.

2. Prepare the company’s stockholders’ equity section of the balance sheet at December 31, 2022. Net income for 2022 was $30,000.

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Assets Current assets.. Property and equipment, net. Total assets......... Liabilities and Equity Liabilities............. Stockholders' equity: $0.80 cumulative preferred stock, $10 par, 400 shares issued............. Common stock, $9 par, 6,500 shares issued................. Paid-in capital in excess of par-common............ Retained earnings....... Total liabilities and equity.... $ 33,400 106,600 $140,000 $ 37,000 4,000 58,500 18,500 22,000 $140,000