04, 5, 6 P11-4A. Stockholders' Equity: Transactions and Balance Sheet Presentation The stockholders' equity of Summit Corporation at January I follows: 7 Percent preferred stock, $100 par value, 20,000 shares authorized 5,000 shares issued and outstanding. Common stock, $15 par value, 100,000 shares authorized 500,000 40,000 shares issued and outstanding. Paid-in capital in excess of par value-Preferred stock Paid-in capital in excess of par value-Common stock Retained earnings 600,000 24,000 360,000 325.000 $1,809,000 Total Stockholders' Equity The following transactions, among others, occurred during the year Jan. Mar. 12 Announced a 4-for-I common stock split, reducing the par value of the common stock to $3.75 per share. The authorization was increased to 400,000 shares. Converted $40,000 face value of convertible bonds payable (the book value of the bonds was $43,000) to common stock. Each $1,000 bond converted to 125 shares of common stock Acquired equipment with a fair market value of $70,000 in exchange for 500 shares of preferred stock. Acquired 10,000 shares of common stock for cash at S10 per share. Sold 1.500 treasury shares at $12 per share. Issued 5,000 shares of common stock at SI1 cash per share Sold 1,200 treasury shares at S9 per share. Closed net income of S95,000 to the Retained Earmings account. 31 June Sept Oct. Nov. Dec. 12 21 28 31 Chapter 11 Stockholders Equity 563 Required a. Set up T-accounts for the stockholders equity accounts as of the beginning of the year and enter the January 1 balances. Prepare journal entries for the given transactions and post them to the T-accounts (set up any additional T-accounts needed). Do not prepare the journal entry for the Dec. 31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders' equity accounts, b. c. Prepare the stockholders' equity section of the balance sheet at December 31