LO11-4, LO 11-5 PROBLEM 11.4B Stockholders' Equity: A Short Comprehensive Problem Early in the year Debra Deal and several friends organized a corporation called Markup, Inc. The corporation was authorized to issue 100,000 shares of S100 par value, 5 percent cumulative pre- ferred stock and 100,000 shares of si par value common stock. The following transactions (among others) occurred during the year: Jan. 7 Issued for cash 30,000 shares of common stock at S10 per share. The shares were issued to Deal and four other investors. Jan. 12 Issued an additional 1,000 shares of common stock to Deal in exchange for her services in organizing the corporation. The stockholders agreed that these services were worth $12,000. Jan. 18 Issued 4,000 shares of preferred stock for cash of S400,000. July 5 Acquired land as a building site in exchange for 10,000 shares of common stock. In view of the appraised value ofthe land and the progress of the company, the directors agreed that the common stock was to be valued for purposes of this transaction at S12 per share. No. 25 The first annual dividend of ss per share was declared on the preferred stock to be paid December 11. Dec. 11 Paid the cash dividend declared on November 25. Dec. 31 After the revenue and expenses were closed into the Income Summary account, that amount indicated a net income of $810,000