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Problem 11-2A The stockholders equity accounts of Ayayai Corp. on January 1, 2017, were as follows Preferred Stock (796, $100 par noncumulative, 5,000 shares authorized) Common Stock ($4 stated value, 300,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (5,000 common shares) $300,000 1,000,000 15,000 480,000 691,500 40,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity Feb. 1 Issued 5,000 shares of common stock for $35,000 Mar. 20 Purchased 1,000 additional shares of common treasury stock at $8 per share. Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1 Nov. 1 Paid the dividend declared on October 1 Dec. Declared a $0.55 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017, Dec. 31 Determined that net income for the year was $278,300. Paid the dividend declared on December 1 21000 Nov. 1 Dividends Payable Cash 21000 Dec. 1 Cash 124500 124500 Dividends Payable 278,300 Dec. 31 Income Summary 278,300 Retained Earnings (To record net income) 145500 Dec. 31Retained Earnings Cash Dividends To close cash dividends) Dividends Payable 145500 124500 Dec. 31 cash 124500 (To record payment of cash dividends payable)