On December 31, 2013, Paxson Company had 1,300,000 shares of $5 par common stock issued and outstanding. At December 31, 2013, stockholders’ equity had the amounts listed here.

Common Stock $6,500,000 Additional Paid-in Capital 1,800,000 Retained Earnings 1,200,000 Transactions during 2014 and other information related to stockholders’ equity accounts were as follows.

1 On January 10, 2014, issued at $107 per share 120,000 shares of $100 par value, 9%

cumulative preferred stock.

2 On February 8, 2014, reacquired 15,000 shares of its common stock for $11 per share.

3 On May 9, 2014, declared the yearly cash dividend on preferred stock, payable June 10, 2014, to stockholders of record on May 31, 2014.

4 On June 8, 2014, declared a cash dividend of $1.20 per share on the common stock outstanding, payable on July 10, 2014, to stockholders of record on July 1, 2014.

5 Net income for the year was $3,600,000.

Instructions Prepare the stockholders’ equity section of Paxson’s balance sheet at December 31, 2014.

AppendixLO1