Unifying Concepts: Stockholders’ Equity Icon Corporation was organized during 2007. At the end of 2008, the equity section of its balance sheet appeared as follows:

During 2009, the following stockholders’ equity transactions occurred (in chronological sequence):

a. Issued 500 shares of common stock at $13 per share.

b. Reissued 500 shares of treasury stock at $13 per share.

c. Issued 1,000 shares of preferred stock at $25 per share.

d. Reissued 500 shares of treasury stock at $10 per share.

e. Declared a dividend large enough to meet the current-dividend preference of the preferred stock and to pay the common stockholders $2 per share. Dividends are recorded directly in the retained earnings account.

f. Closed net income of $65,000 to Retained Earnings. Revenues were $400,000; expenses were $335,000.
Required:
1. Journalize the transactions.
2. Prepare the stockholders’ equity section of the balance sheet at December 31, 2009.

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Contributed capital: Preferred stock (6%, $20 par, 10,000 shares authorized, 5,000 shares issued and outstanding) $100,000 Common stock ($10 par, 50,000 shares authorized, 11,000 shares issued, 10,000 outstanding) 110,000 Paid-in capital in excess of par, preferred stock 20,000 Total contributed capital $230,000 Retained earnings 100,000 Total contributed capital plus retained earnings $330,000 Less treasury stock (1,000 shares of common at cost) Total stockholders' equity (12,000) $318,000