Accounting for Shareholders' Equity Transactions The shareholders' equity section of the consolidated balance sheet of Perry Corporation appeared as follows at the beginning of the year. Common stock, $1.00 par value Additional paid-in-capital $100,000 1,200,000 Convertible preferred stock, no par value 800,000 Retained deficit (600,000) Treasury stock (250,000) Sharholders' equity $1,250,000 The following transactions occurred during the year: 1. Generated net income of $110,000. 2. Paid cash dividends of $190,000. 3. Issued a ten percent common stock dividend; the fair value of the stock was $7 per share at this time. 4. Declared and issued a 2-for-1 forward stock split. 5. Converted 10,000 shares of convertible preferred stock with a book value of $150,000 into 15,000 shares of common stock. Prepare the shareholders' equity section of the balance sheet of Perry Corporation at year-end. Use negative signs with answers that reduce the balance and/or a Total that reduces the overall balance of the Shareholders' equity. Transaction Common Stock at Par Additional Paid-in-Capital Preferred Stock, No-Par Retained Earnings Treasury Stock Beginning Balance $ 100,000 $1,200,000 $ 800,000 $ (600,000) $ (250,000) 1 110,000 2 0 (190,000) 0 3 4 10,000 0 60,000 0 (70,000) 0 0 0 0 5 15,000 x 135,000 x (150,000) 0 Total $ 125,000 * $ 1,395,000 * $ 650,000 $ (750,000) $ (250,000)