19A-4. The following is the stockholders' equity of Pierotti Corporation on October 1, 201X Paid-In Capital: Preferred Stock, $13 par value authorized 5,700 shares, 3.500 shares issued and outstanding $ 45,500 Common Stock, $6 par value, authorized 19,000 shares, 7,000 shares issued and outstanding 42,000 Additional Paid-In Capital: Paid-In Capital in Excess of Par Value--Preferred $11,000 Paid-In Capital in Excess of Par Value_Common 7,500 Paid-In Capital in Excess of Par Value-Stock Dividend 2,000 Total Additional Paid-In Capital 20,500 Total Paid-In Capital $108,000 Retained Earnings 240,000 Totat Stockholders' Equity $348,000 1. Journalize the transactions in general journal form. 2. Prepare the stockholders' equity section of the balance sheet using the legal capital approach as of December 31, 201X. The working papers that accompany this text have accounts to update ledger balances. Be sure to put in the beginning balances. 201X Oct. 3 Nov. 15 18 Dedared a $0.55 per share dividend on the common stock and a $1.60 per share dividend on the preferred. (The Dividends Payable account will record amounts for both common and preferred, although companies could set up Common Dividend Payable and Preferred Dividend Payable accounts.) Dividends were paid that were declared on October 3. Purchased 340 shares of its own common stock at $15 per share. Reissued 70 shares al 521 per share. Dedared a 20% stock dividend on common. Market value of stock is $50 per share. Distributed stock dividend declared on November 26. Reissued 60 shares of treasury stock at $14 per share. Closed the Income Summary account, which had net income of $90.000, to Retained Earnings. 25 26 Dec. 29 30 31