On January 1, 2021, Artline Corporation had the following information available

regarding its stockholders' equity:

5%, $? par, cumulative Preferred Stock, 700,000 shares authorized, 350,000 shares issued $ 26,250,000

Paid-in Capital in Excess of Par - Preferred Stock 2,400,000

Common Stock, $6 par, 900,000 shares authorized, ? shares issued, ? shares outstanding 3,120,000

Paid-in Capital in Excess of Par - Common Stock 18,200,000

Paid-in Capital from Treasury Stock Transactions 35,000

Treasury Stock (50,000 shares @ cost) 1,850,000

Retained Earnings 77,600,000

The following transactions affecting stockholders' equity took place during 2021:

2/4/2021 Issued 35,000 shares of preferred stock for $83/share.

3/17/2021 Issued 60,000 shares of common stock for $34/share.

4/24/2021 Declared a cash dividend to shareholders of record on May 15, 2021 payable on

May 31, 2021. The preferred shareholders are to receive their contractual preference

(no dividends are in arrears) and the common shareholders are to receive $2/share.

Use separate payable accounts for preferred and common dividends.

5/31/2021 Paid the cash dividend.

7/3/2021 Sold all of the treasury stock for $33/share.

9/10/2021 Declared a 10% stock dividend on the common stock for shareholders of record

September 30, 2021, to be issued on October 15, 2021. The market price of the

common stock on September 10, 2021 was $40/share.

10/15/2021 Issued the shares in conjunction with the stock dividend.

11/4/2021 Declared a 3:1 stock split on the common stock. Authorized shares were adjusted

to accommodate the split.

11/18/2021 Repurchased 25,000 shares of its own common stock for $11/share.

12/6/2021 Sold 16,000 shares of its treasury stock for $13/share.

12/14/2021 Closed out any and all dividend accounts.

12/31/2021 Closed $15,600,000 of revenues and 17,200,000 of expenses for fiscal 2021.

Instructions

1) Open T-accounts for the stockholders' equity acconts that contain balances on January 1, 2021 and

insert the appropriate balance labeling it 1/1/21.

2) Record formal journal entries for the 2021 transactions. Journal descriptions are not required.

3) Post the 2021 journal entries to the stockholders' equity T-accounts (or create new stockholders'

equity T-accounts if necessary) labeling each entry with the apporpriate date.

4) Prepare the stockholders' equity section of the balance sheet at December 31, 2021.

Follow the format on page 646 (Method 1) displayed in your textbook.