Shown below is the stockholders equity section of Powells balance sheet at December 31, 2010:

Stockholders equity:

Common stock, $2 par value, 500,000 shares authorized,

?? shares issued........................................................................ $ 500,000

Additional paidin capital: common stock................................................ 1,750,000

Total paid-in capital........................................................................... $2,250,000

Retained earnings..................................................................................... 2,400,000

Total stockholders equity........................................................................ $4,650,000

In 2011, the following events occurred:

Powell issued 2,500 shares of $2 par common stock as payment for legal services. Although Powells stock is not traded on any exchange, the agreed-upon value of the legal services is $80,000.

Powell issued 4,500 shares of 6% cumulative preferred stock, $100 par value, for $106 per share.

The board of directors declared a dividend of $1.25 per share on the common stock.

Powells net income for 2011 was $675,000.

Instructions

Complete in good form the stockholders equity section of a balance sheet prepared for Powell at December 31, 2011.

Stockholders equity:
6% cumulative preferred stock, $100 par value, 10,000 shares authorized, 4,500 shares issued	$
Total paidin capital	$
Total stockholders equity

Use this space to calculate ending Retained Earnings, Dec 31 (hint: remember the Retained Earnings Statement format or think about the T-account approach

Beginning retained earnings	$
Add:
Less:
Retained earnings, Dec. 31, 2011	$