Stockholders' Equity Section of the Balance Sheet The stockholders' equity of Black Corporation at January 1 follows: 8 Percent preferred stock, $100 par value, 20,000 shares authorized; 5,000 shares issued and outstanding Common stock, $1 par value, 100,000 shares $500,000 authorized; 40,000 shares issued and outstanding 40,000 Paid-in capital in excess of par value-Preferred stock 200,000 Paid-in capital in excess of par value-Common stock 800,000 Retained earnings 625,000 Total Stockholders' Equity $2,165,000 The following transactions, among others, occurred during the year: Jan. 1 Announced a 4-for-1 common stock split, reducing the par value of the common stock to $0.25 per share. Mar. 31 Converted $75,000 face value of convertible bonds payable (the book value of the bonds was $83,000) to common stock. Each $1,000 bond converted to 110 shares of common stock. (Round common stock entry in whole dollars. Round up.) June 1 Acquired equipment with a fair market value of $90,000 in exchange for 300 shares of preferred stock. Sept. 1 Acquired 15,000 shares of common stock for cash at $20 per share. Nov. 21 Issued 5,000 shares of common stock at $22 cash per share. Dec. 28 Sold 1,000 treasury shares at $23 per share. 31 Closed net income of $145,000, to the Retained Earnings account.