(Equity Transactions and Statement Preparation) Amado Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2007, the following accounts were included in stockholders’ equity.

Instructions Prepare the stockholders’ equity section for Amado Company at December 31, 2007. Show all supporting computations.

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Preferred Stock, 150,000 shares Common Stock, 2,000,000 shares Paid-in Capital in Excess of Par-Preferred Paid-in Capital in Excess of Par-Common Retained Earnings $ 3,000,000 10,000,000 200,000 27,000,000 4,500,000