The stockholders' equity section of Molloy Corporation's balance sheet on December 3 1 , 20x4, appears as follows:

Prepare a statement of stockholders' equity for the year ended December 31, 20x5, assuming the following transactions occurred in sequence during 20\5:

a. Issued 10,000 shares of $100 par value, 9 percent cumulative preferred stock at par after obtaining autiiorization from the state.

b. Issued 40,000 shares of common stock in connection with the conversion of bonds having a earning value of 5600,000.

c. Declared and issued a 2 percent common stock dividend. The market value on the date of declaration was S14 per share.

d. Purchased 10,000 shares of common stock for the treasury at a cost of 516 per share.

e. Earned net income of 5460,000.

f. Declared and paid the full year's dividend on preferred stock and a dividend of $.40 per share on common stock outstanding at the end of the year.
g. Had foreign currency translation adjustment of minus 5100,000. L01

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Contributed capital Common stock, $2 par value, 500,000 shares authorized, 400,000 shares issued and outstanding Paid-in capital in excess of par value, common Total contributed capital Retained earnings Total stockholders' equity $ 800,000 1,200,000 $2,000,000 4,200,000 $6,200,000