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Sandhill Company reported the following amounts in the stockholders' equity section of its December 31, 2019, balance sheet. Preferred stock, 9%, $100 par (10,000 shares
Sandhill Company reported the following amounts in the stockholders' equity section of its December 31, 2019, balance sheet. Preferred stock, 9%, $100 par (10,000 shares authorized, 1,800 shares issued) Common stock, $5 par (101,500 shares authorized, 20,300 shares issued) Additional paid-in capital Retained earnings Total $180,000 101,500 130,000 486,000 $897.500 During 2020, Sandhill took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2019 $9 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2019. 2. Purchased 1,800 shares of its own outstanding common stock for $41 per share. Sandhill uses the cost method. 3. Reissued 700 treasury shares for land valued at $31,400. 4. Issued 510 shares of preferred stock at $104 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $45 per share. 6. Issued the stock dividend. 7. Declared the annual 2020 $9 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2021. Please help with Part B (b) Prepare the December 31, 2020, stockholders' equity section. Assume 2020 net income was $333,000. (Enter account name only .Do not provide any descriptive information.) SANDHILL COMPANY Stockholders' Equity No. Account Titles and Explanation 1. Dividends Payable - Common Dividends Payable - Preferred Cash Treasury Stock Cash 3. Land Treasury Stock Paid-in Capital from Treasury Stock 4. Cash Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock 5. Retained Earnings Common Stock Dividend Distributable Paid-in Capital in Excess of Par-Common Stock 6. Common Stock Dividend Distributable Common Stock 7. Retained Earnings Dividends Payable - Common Dividends Payable - Preferred Debit 40,600 16,200 73,800 31,400 53,040 86,400 9,600 63,030 Credit 56,800 73,800 28,700 2,700 51,000 2,040 9,600 76,800 9,600 42,240 20,790 $ $
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