Exercise 12-16

Statement of Stockholders' Equity

The stockholders equity section of Manco Corporation's balance sheet on December 31, 2014, follows.

Contributed capital:
Common stock, $2 par value, 250,000 shares authorized, 200,000 shares issued and outstanding	$ 400,000
Additional paid-in capital	600,000
Total contributed capital	$1,000,000
Retained earnings	2,100,000
Total stockholders' equity	$3,100,000

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Prepare a statement of stockholders' equity for the year ended December 31, 2015, assuming these transactions occurred in sequence in 2015:

Issued 5,000 shares of $100 par value, 9 percent cumulative preferred stock at par after obtaining authorization from the state.

Issued 20,000 shares of common stock in connection with the conversion of bonds having a carrying value of $300,000.

Declared and issued a 2 percent common stock dividend. The market value on the date of declaration was $14 per share.

Purchased 5,000 shares of common stock for the treasury at a cost of $16 per share.

Earned net income of $230,000.

Declared and paid the full-year's dividend on preferred stock and a dividend of $0.40 per share on common stock outstanding at the end of the year.

If an amount is zero, enter "0".