Stock Transactions and the Stockholders’ Equity Section The following is Saratoga Springs Company’s stockholders’ equity section of the balance sheet on December 31, 2008:

Required:
1. Journalize the following 2009 transactions:

a. Issued 3,000 preferred shares at $62 per share.

b. Reacquired 2,500 common shares for the treasury at $17 per share.

c. Declared and paid a $1.50-per-share dividend on common stock in addition to paying the required preferred dividends. (Note: Debit Retained Earnings directly.)

d. Reissued 900 treasury shares at $20 per share.

e. Reissued the remaining treasury shares at $16 per share.

f. Earnings for the year were $83,000, including $350,000 of revenues and $267,000 of expenses.
2. Prepare the stockholders’ equity section of the balance sheet for the company at December 31, 2009.

Transcribed Image Text:

Preferred stock (7%, $50 par, noncumulative, 22,000 shares authorized, 9,000 shares issued and outstanding) $450,000 Common stock ($8 par, 110,000 shares authorized, 94,000 shares issued and outstanding) 752,000 Paid-in capital in excess of par, preferred stock 125,000 Paid-in capital in excess of par, common stock Retained earnings 326,000 540,000