Page 5 Question 2: Equity presentation The following information is available about Tulip Corporation. (4 marks) Balance of accounts at the beginning of the year: Common Stock (2 million shares issued at $5 par): $ 10,000,000 Paid in Capital in Excess of par - Common Stock $14 per share 28,000,000 Preferred Stock (100,000 shares issued at $20 par): 2,000,000 Paid in Capital in Excess of par - Preferred: 100,000 Treasury Stock (22,000 shares @10) 220,000 During the year the following transactions took place: 1. Reacquired and retired 25,000 common shares for $600,000 cash 2. Reissued 10,000 retired shares for $ 26 per share. Additional information: Preferred shares authorized 300,000 shares Authorized 10,000,000 common shares. Retained Earnings at the beginning of the year was $1,790,000. Net income for the year was $400,000 of which 75% was paid in dividends. Required: Use all the information given above to prepare the Equity section of Balance Sheet at the end of the year