ACC-371 Problem 15-12

I'm not sure where I'm going so wrong.

Problem 15-12 Your answer is partially correct. Try again Penn Company was formed on July 1, 2012. It was authorized to issue 307,800 shares of $11 par value common stock and 114,900 shares of 8% $25 par value, cumulative and nonparticipating preferred stock. Penn Company has a July 1-June 30 fiscal year. The following information relates to the stockholders' equity accounts of Penn Company Common Stock Prior to the 2014-2015 fiscal year, Penn Company had 124,900 shares of outstanding common stock issued as follows 1. 2. 3. 90,700 shares were issued for cash on July 1, 2012, at $32 per share On July 24, 2012, 5,000 shares were exchanged for a plot of land which cost the seller $77,500 in 2006 and had an estimated fair value of $227,700 on July 24, 2012 29,200 shares were issued on March 1, 2013, for $41 per share During the 2014-2015 fiscal year, the following transactions regarding common stock took place Penn purchased 2,000 shares of its own stock on the open market at $38 per share. Penn uses the cost method for treasury stock. Penn declared a 4% stock dividend for stockholders of record on January 15, 2015, to be issued on January 31, 2015, Penn was having a liquidity problem and could not afford a cash dividend at the time, Penn's common stock was selling at $51 per share on December 15, 2014 Penn sold 490 shares of its own common stock that it had purchased on November 30, 2014, for $22,500 November 30, 2014 December 15, 2014 June 20, 2015 Preferred Stock Penn issued 40,100 shares of preferred stock at $45 per share on July 1, 2013 Cash Dividends Penn has followed a schedule of declaring cash dividends in December and June, with payment being made to stockholders of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2015, are shown below Declaration Date Preferred Stock Common 12/15/13 6/15/14 12/15/14 Stock $0.35 per share $0.35 per share $1 per share $1 per share $1 per share No cash dividends were declared during June 2015 due to the company's liquidity problems Retained Earnings As of June 30, 2014, Penn's retained earnings account had a balance of $698,300. For the fiscal year ending June 30, 2015, Penn reported net income of $42,600 Prepare the stockholders' equity section of the balance sheet, for Penn Company as of June 30, 2015, as it should appear in its annual report to the shareholders. (Enter account name only and do not provide descriptive information