Greenfield Incorporated had an initial public offering (IPO) in 2020. The results of the IPO, as well as the balance in retained earnings for the organization, is as follows as of December 31, 2020:

Greenfield Incorporated Equity Accounts: Common stock: $ 500,000 APIC Common Stock: $1,750,000 Retained Earnings: $2,400,000

In 2021, the following events occurred:

• The corporation needed legal advice and issued an additional 2,500 shares of $2 par common stock as payment for legal services. The value of the legal services is $80,000.
• The corporation needed cash to help expand the distribution channel and issued 4,500 shares out of 10,000 shares authorized as 6% cumulative preferred stock, $100 par value, for $106 per share.
• The board of directors wanted to make sure the stockholders knew they were valued and declared a dividend of $1.25 per share on the outstanding common stock.
• Greenfield Incorporated had a successful year during 2021 and reported net income of $675,000.

Complete the stockholders equity section of a balance sheet as of December 31, 2021 including the impact of the events that happened during the year.

Greenfield Incorporated Equity Section of the Balance Sheet
Preferred stock	$
Total equity	$

Part 2

The company generally issues stock to raise additional capital, but an IPO does not come without risk. What legal disclosures are required when a company has an IPO? In addition, what ethical issues could the organization face with repurchasing its stock to prevent a takeover?