Question 4 Not complete Marked out of 10.00 Accounting for Shareholders' Equity Transactions The shareholders' equity section of the consolidated balance sheet of Perry Corporation appeared as follows at the beginning of the year. Common stock, $1.00 par value $ 100,000 Additional paid-in-capital 1.200,000 Convertible preferred stock, no par value 800,000 Retained deficit (600,000) Treasury stock (250,000) Sharholders' equity $1,250,000 The following transactions occurred during the year: 1. Generated net income of $100,000. 2. Paid cash dividends of $180,000. 3. Issued a ten percent common stock dividend; the fair value of the stock was $9 per share at this time. 4. Declared and issued a 2-for-1 forward stock split. 5. Converted 10,000 shares of convertible preferred stock with a book value of $250,000 into 25,000 shares of common stock. Prepare the shareholders' equity section of the balance sheet of Perry Corporation at year-end. Use negative signs with answers that reduce the balance and/or a Total that reduces the overall balance of the Shareholders' equity. Transaction Common Stock at Par Additional Paid-in-Capital Preferred Stock, No-Par Retained Earnings Treasury Stock $ 100,000 $ 1,200,000 $ 800,000 $ (600,000) $ (250,000) Beginning Balance 2 3 4 5 Total s