On December 31, 2013, Peabody Company had 820,000 shares of $10 par common stock issued and outstanding. At December 31, 2013, stockholders’ equity had the amounts listed here.

Common Stock $8,200,000 Additional Paid-in Capital 2,460,000 Retained Earnings 1,600,000 Transactions during 2014 and other information related to stockholders’ equity accounts were as follows.

1 On January 18, 2014, issued at $107 per share 80,000 shares of $100 par value, 7%

cumulative preferred stock.

2 On March 23, 2014, reacquired 20,000 shares of its common stock for $15 per share.

3 On May 15, 2014, declared the yearly cash dividend on preferred stock, payable June 12, 2014, to stockholders of record on May 31, 2014.

4 On June 8, 2014, declared a cash dividend of $2.00 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 $2,900,000.

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

AppendixLO1