Exercise 15-18 Sheffield 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, 1,800 shares issued) $180,000 Common stock, $5 par (94,000 shares authorized, 18,800 shares issued) 94,000 Additional paid-in capital 131,000 Retained earnings 478,000 Total $883,000 During 2017, Sheffield 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 1,500 shares of its own outstanding common stock for $43 per share. Sheffield uses the cost method. 3. Reissued 800 treasury shares for land valued at $36,200. 4. Issued 540 shares of preferred stock at $104 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $41 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 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.) 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 18000 Dividends Payable - Common Stock 36000 Cash 54000 2. Treasury Stock Cash 64500 3. Land Treasury Stock 34400 Cash Preferred Stock 54000 | Paid-in Capital in Excess of Par - Preferred 2160 5. Tretained Earnings 77900 Common Stock Dividend Distributable 8650 | Paid-in Capital in Excess of Par - Common indTOTUOLIT GGTGTOGTAHU 69250 6. Common Stock Dividend Distributable 1 common Stock Common Stock 8650 7. Retained Earnings 9660 Dividends Payable - Preferred Stock 21600 x Dividends Payable - Common Stock 38060 Prepare the December 31, 2017, stockholders' equity section. Assume 2017 net income was $347,000. (Enter account name only. Do not provide any descriptive information.) SHEFFIELD COMPANY Stockholders' Equity December 31, 2017 Capital Stock Preferred Stock Common Stock 102650 T Total Capital Stock 336650 T Additional Paid-in Capital 204210 U Total Paid-in Capital 540860 Retained Earnings 687440 Total Paid-in Capital and Retained Earnings 1228300 Less: Treasury Stock 30100 Total Stockholders' Equity