I NEED TO SEE CALCULCULATOIN AND PROCESSES TO STUDY FOR IT.

The stockholders' equity section of ABC Company shows the following on December 31, 2017:

Preferred stock6%, $100 par, 5,000 shares outstanding $ 500,000

Common stock$10 par, 60,000 shares outstanding 600,000

Paid-in capital in excess of par 200,000

Retained earnings 118,000

Total stockholders' equity $1,418,000

During fiscal year 2018, the following activity occurred:

• Net income was $75,000.
• Issued cash dividends for $30,000.
• Purchased 5,000 shares of its own common stock for $75,000.

Instructions:

Prepare the December 31, 2018, stockholders equity section. Make sure to include the proper descriptions of stock (i.e. shares outstanding).

Stockholders' Equity December 31, 2018
Total Stockholders Equity