Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2018, 100 shares of preferred stock and 2,000 shares of common stock have been issued. The following transactions affect stockholders equity during 2018:

March 1 Issue 1,200 shares of common stock for $22 per share.

May 15 Purchase 500 shares of treasury stock for $15 per share.

July 10 Reissue 300 shares of treasury stock purchased on May 15 for $20 per share.

October 15 Issue 300 shares of preferred stock for $25 per share.

December 1 Declare a cash dividend on both common and preferred stock of $0.50 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.)

December 31 Pay the cash dividends declared on December 1.

Donnie Hilfiger has the following beginning balances in its stockholders equity accounts on January 1, 2018: Preferred Stock, $100; Common Stock, $20; Additional Paid-in Capital, $56,000; and Retained Earnings, $20,500. Net income for the year ended December 31, 2018, is $8,800.

Taking into consideration the beginning balances on January 1, 2018 and all the transactions during 2018, respond to the following for Donnie Hilfiger:

Required:

1. Prepare the stockholders equity section of the balance sheet as of December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

DONNIE HILFIGER
Balance Sheet
(Stockholders' Equity Section)
December 31, 2018
Stockholders' equity:
Preferred stock	$400
Common stock	32
Additional paid-in capital
Total paid-in capital	432
Retained earnings
Treasury stock
Total stockholders' equity	$432

Prepare the statement of stockholders equity for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

DONNIE HILFIGER
Statement of Stockholders' Equity
For the Year Ended December 31, 2018
	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Total Stockholders' Equity
Balance, January 1	$100	$20	$56,000	$20,500	$0	$76,620
Issue of common stock
Purchase of treasury stock
Sale of treasury stock
Issued preferred stock
Cash dividends
Net income
Balance, December 31	$100	$20	$56,000	$20,500	$0	$76,620