13 Statement of retained earnings and stockholders' equity section (LO. 1, Mansfield Merchants, Inc., had the following stockholders' equity on Jan- 2,31 uary 1, 1989: Common stock, $1 par, 1,000,000 shares authorized, 800,000 shares issued and outstanding Paid-in capital in excess of par value Retained earnings Total stockholders' equity $ 800.000 3,200,000 1,950,000 $5,950,000 Selected transactions and events from 1989 follow. The transactions and events occurred in the sequence presented. Declared and later issued) a 5% stock dividend. Market value at the time of declaration was $10 per share. $400,000 Acquired 20,000 treasury shares at $8 per share 160,000 Declared and later paid) a cash dividend 24,600 Sold 12,000 treasury shares at $9 per share 108,000 Detected an error that took place in 1988. The company failed to record a $70,000 gain on a land sale, which affected taxes by $21,000. 49,000 Instructions a Prepare a statement of retained earnings for the year ended December 31, 1989. Net income for the year was $736,800. b Prepare the stockholders' equity section for the corporation's December 31, 1989, balance sheet. 46.6592 a