RMN Corp. had a variety of shareholders’equity transactions in 2000. It had the following balances in Shareholders’ Equity accounts and Cash and other assets accounts at the beginning of 2000:

Cash and other assets $78,000,000 Common stock, $1.00 par value 5,000,000 Capital in excess of par 25,000,000 Retained earnings 50,000,000 Treasury stock (40,000 shares) (2,000,000)

RMN had the following transactions that affected shareholders’ equity during 2000:

1. Issue five million shares of no-par preferred stock at a price of $4.00.

2. Sell the treasury stock for $4,500,000.00.

3. Earn net income of $35,000,000.00.

4. Declare and pay dividends of $10,000,000.00.

5. Employee stock options were granted with the purchase of 100,000 shares of common stock. The market price is currently $7 per share. The exercise price is $7 per share.

6. The stock options were exercised and the company issued the 100,000 shares. The current market price is $8 per share.

Required:

Record these transactions in each of the components of shareholders’ equity and in Cash and other assets. Use the balance sheet equation to calculate the ending balance in each account.