Details attached below. Question 3

Penn Company was formed on July 1, 2012. It was authorized to issue306,200shares of $10par value common stock and118,300shares of9% $25par 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 had130,300shares of outstanding common stock issued as follows.

1.	92,500shares were issued for cash on July 1, 2012, at $32per share.
2.	On July 24, 2012,5,000shares were exchanged for a plot of land which cost the seller $71,900in 2006 and had an estimated fair value of $225,600on July 24, 2012.
3.	32,800shares were issued on March 1, 2013, for $42per share.

During the 2014?2015 fiscal year, the following transactions regarding common stock took place.

November30,2014	Penn purchased2,500shares of its own stock on the open market at $39per share. Penn uses the cost method for treasury stock.
December15,2014	Penn declared a5% 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 $51per share on December 15, 2014.
June20,2015	Penn sold430shares of its own common stock that it had purchased on November 30, 2014, for $21,500.

Preferred Stock

Penn issued40,800shares of preferred stock at $44per 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	Common Stock	Preferred Stock
12/15/13	$0.41per share	$1per share
6/15/14	$0.41per share	$1per share
12/15/14	$1per 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 $707,600. For the fiscal year ending June 30, 2015, Penn reported net income of $41,300.

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.)

PENN COMPANY Stockholders? Equity June 30, 2015

	$

	$

:

$ Show List of Accounts Link to Text Link to Text Link to Text

Question 3 Penn Company was formed on July 1, 2012. It was authorized to issue 306,200 shares of $10 par value common stock and 118,300 shares of 9% $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 130,300 shares of outstanding common stock issued as follows. 1. 92,500 shares were issued for cash on July 1, 2012, at $32 per share. 2. On July 24, 2012, 5,000 shares were exchanged for a plot of land which cost the seller $71,900 in 2006 and had an estimated fair value of $225,600 on July 24, 2012. 3. 32,800 shares were issued on March 1, 2013, for $42 per share. During the 2014-2015 fiscal year, the following transactions regarding common stock took place. November 30, 201 Penn purchased 2,500 shares of its own stock on the open market at 4 $39 per share. Penn uses the cost method for treasury stock. December 15, 2014 Penn declared a 5% 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. June 20, 2015 Penn sold 430 shares of its own common stock that it had purchased on November 30, 2014, for $21,500. Preferred Stock Penn issued 40,800 shares of preferred stock at $44 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 12/15/13 6/15/14 12/15/14 Common Stock $0.41 per share $0.41 per share Preferred Stock $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 $707,600. For the fiscal year ending June 30, 2015, Penn reported net income of $41,300. 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.) PENN COMPANY Stockholders' Equity June 30, 2015 $ $ : $