Fatahie Corporation has the following capital structure at the beginning of the year:

5% Preferred stock, $50 par value, 20,000 shares authorized, 6,000 shares issued and outstanding	$300,000
Common stock, $10 par value, 60,000 shares authorized, 40,000 shares issued and outstanding	400,000
Paid-in capital in excess of par	110,000
Total paid-in capital	810,000
Retained earnings	440,000
Total stockholders equity	$1,250,000

Instructions

1. Record the following transactions which occurred consecutively (show all calculations.

1. A total cash dividend of $90,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts.
2. A 15% common stock dividend was declared. The average fair value of the common stock is $18 a share.
3. Assume that net income for the year was $120,000 (record the closing entry) and the board of directors appropriated $70,000 of retained earnings for plant expansion.

2. Construct the stockholders equity section incorporating all the above information.