ACC 221 Chapter 15 Stockholder's Equity Summary Problem The stockholder's equity section of Power Corporation's Balance Sheet at December 31, 2018 appears below: Stockholder's Equity: Paid in Capital Capital Stock 4% Preferred Stock, $10 Par Value 100,000 shares authorized, 20,000 shares issued $200,000 Common Stoc, $5 par value 300,000 shares authorized, 200,000 shares issued and outstanding 1,000,000 Total Capital Stock 1,200,000 Additional Paid in Capital: Paid in Capital in Excess of Par-Preferred 100,000 Pad in Capital in Excess of Par-Common Total Additional Paid in Capital Total Paid in Capital Retained Earnings Total Stockholder's Equity 800,000 900,000 2,100,000 400,000 $2,500,000 During 2019, the following stock transactions occurred: Jan. 1st-Issued 20,000 shares of common stock at $15 per share Aug. 2nd - Purchased 15,000 shares of our stock at $12 per share to be held in treasury Nov. 1st - Reissued 4,000 shares of treasury stock for $15 per share Dec. 2nd - Issued 5,000 shares of preferred stock at $20 per share Instructions: A) Prepare the journal entries to record the above stock transactions. B) Prepare the appropriate ledgers and stockholder's equity section of the Balance Sheet at December 31, 2019. Assume that net income for 2019 was $80,000 and that no dividends were declared