Exercise 15-18 Sandhill Company reported the following amounts in the stockholders' equity section of its December 31, 2016, balance sheet. Preferred stock, 9%, $100 par (10,000 shares authorized, 1,900 shares issued) $190,000 Common stock, $5 par (108,500 shares authorized, 21,700 shares issued) 108,500 Additional paid-in capital 116,000 Retained earnings 424,000 Total $838,500 During 2017, Sandhill took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2016 $9 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 1,600 shares of its own outstanding common stock for $39 per share. Sandhill uses the cost method. 3. Reissued 800 treasury shares for land valued at $31,600. 4. Issued 460 shares of preferred stock at $103 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $42 per share. 6. Issued the stock dividend. 7. Declared the annual 2017 $9 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2018. Your answer is partially correct. Try again. Prepare journal entries to record the transactions described above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit 1. Dividends Payable - Preferred Stock Dividends Payable - Common Stock Cash 2. Treasury Stock Cash 3. Land Treasury Stock IIP 4. cash Preferred Stock Paid-in Capital in Excess of Par - Preferred Stoc 5. Retained Earnings Common Stock Paid-in Capital in Excess of Par - Common Stoc 6. Common Stock Dividend Distributable Common Stock 7. Retained Earnings Dividends Payable - Preferred Stock Dividends Payable - Common Stock SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Prepare the December 31, 2017, stockholders' equity section. Assume 2017 net income was $316,000. (Enter account name only. Do not provide any descriptive information.) SANDHILL COMPANY Stockholders' Equity December 31, 2017 Capital Stock Prepare the December 31, 2017, stockholders' equity section. Assume 2017 net income was $316,000. (Enter account name only. Do not provide any descriptive information.) SANDHILL COMPANY Stockholders' Equity December 31, 2017 Capital Stock Preferred Stock Yout Total Capital Stock Additional Paid-in Capital Retained Earnings Total Paid-in Capital and Retained Earnings Less Treasury Stock Total Stockholders' Equity olders' Equity Click if you would like to Show Work for this question: Open Show Work
