Accounting for Shareholders' Equity Transactions The shareholders' equity section of the balance sheet of The Claremont Company appeared as follows at the end of the first year of operations: Common stock, $0.16 par value Additional paid-in-capital Retained earnings Treasury stock Shareholders' equity $960,000 143,040,000 51,200,000 (12,000,000) $183,200,000 During the second year of operations, the following transactions occurred: 1. Generated net income of $9.6 million. 2. Paid a cash dividend of $2.4 million. 3. Purchased 100,000 shares of common stock at $15.2 per share. 4. Executed a 1-for-2 reverse stock split. Prepare the shareholders' equity section of the balance sheet of Claremont Company at the end of the second year of operations. Prepare the shareholders' equity section of the balance sheet of Claremont Company at the end of the second year of operations. Use a negative sign with treasury stock answer. The Claremont Company Stockholders' Equity December 31, Year 2 Common stock, par value $ 0 x Additional paid-in-capital Retained earnings 0 x Treasury stock 0 x Total shareholders' equity $ 0 x