Question
Blue Company has two classes of capital stock outstanding: 7%, $20 par preferred and $5 par common. At December 31, 2017, the following accounts were
Blue Company has two classes of capital stock outstanding: 7%, $20 par preferred and $5 par common. At December 31, 2017, the following accounts were included in stockholders equity. Preferred Stock, 146,100 shares $ 2,922,000 Common Stock, 1,982,000 shares 9,910,000 Paid-in Capital in Excess of ParPreferred Stock 199,000 Paid-in Capital in Excess of ParCommon Stock 26,630,000 Retained Earnings 4,454,000 The following transactions affected stockholders equity during 2018. Jan. 1 30,100 shares of preferred stock issued at $23 per share. Feb. 1 48,800 shares of common stock issued at $21 per share. June 1 2-for-1 stock split (par value reduced to $2.50). July 1 28,700 shares of common treasury stock purchased at $10 per share. Blue uses the cost method. Sept. 15 9,400 shares of treasury stock reissued at $11 per share. Dec. 31 The preferred dividend is declared, and a common dividend of 51 per share is declared. Dec. 31 Net income is $2,093,000. Prepare the stockholders equity section for Blue Company at December 31, 2018.
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