A On December 31, 2011, Stitch Company had 1,300,000 shares of $5 par common stock issued and outstanding. The stockholders’ equity accounts at December 31, 2011, had the balances listed here.

Transactions during 2012 and other information related to stockholders’ equity accounts were as follows.
1. On January 10, 2012, issued at $107 per share 120,000 shares of $100 par value, 9%
cumulative preferred stock.
2. On February 8, 2012, reacquired 15,000 shares of its common stock for $11 per share.
3. On June 8, 2012, declared a cash dividend of $1.20 per share on the common stock outstanding, payable on July 10, 2012, to stockholders of record on July 1, 2012.
4. On December 9, 2012, declared the yearly cash dividend on preferred stock, payable January 10, 2013, to stockholders of record on December 31, 2012.
5. Net income for the year was $3,600,000.
Instructions Prepare the stockholders’ equity section of Stitch’s balance sheet at December 31, 2012.

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Common Stock Additional Paid-in Capital Retained Earnings $6,500,000 1,800,000 1,200,000