Exercise 15-18

Pharoah Company reported the following amounts in the stockholders equity section of its December 31, 2016, balance sheet.

Preferred stock, 10%, $100 par (10,000 shares authorized, 2,200 shares issued)		$220,000
Common stock, $5 par (95,500 shares authorized, 19,100 shares issued)		95,500
Additional paid-in capital		136,000
Retained earnings		455,000
Total		$906,500

During 2017, Pharoah took part in the following transactions concerning stockholders equity.

1.		Paid the annual 2016 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2016.
2.		Purchased 1,700 shares of its own outstanding common stock for $42 per share. Pharoah uses the cost method.
3.		Reissued 800 treasury shares for land valued at $34,600.
4.		Issued 460 shares of preferred stock at $105 per share.
5.		Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $45 per share.
6.		Issued the stock dividend.
		7.Declared the annual 2017 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2018.

Prepare the December 31, 2017, stockholders' equity section. Assume 2017 net income was $314,000. (Enter account name only. Do not provide any descriptive information) PHAROAH COMPANY Stockholders Equity December 31, 2017 Preferred Stock $266000 Common Stock Total Capital Stock Additional Paid-in Capital Total Paid-in Capital Retained Earnings Total Paid-in Capital and Retained Earnings Less : Treasury Stock Total Stockholders' Equity