Stockholders' Equity: Transactions and Balance Sheet Presentation The stockholders' equity of Summit Corporation at January 1 follows; 7 Percent preferred stock, $100 par value. 20.000 shares authorized 5,000 shares issued and outstanding Common stock, $15 par value, 100,000 shares authorized 40,000 shares issued and outstanding Paid-in capital in excess of par value-Preferred stock Paid-in capital in excess of par value Common stock Retained earnings Total Stockholders' Equity $500.000 600,000 24,000 360,000 325.000 $1,800,000 The following transactions, among others, occurred during the year Jan 12 Announced a 3-for-1 common stock split, reducing the par value of the common stock to 15 per share. The authorization was increased to 300,000 shares Mar 31 Converted $40,000 face value of convertible bonds payable the book value of the bonds was $46,000) to common stock. Each $1,000 bond converted to 125 shares of common stock 1 Acquired equipment with a fair market value of $80,000 in exchange for 500 shares of preferred stock Sept 1 Acquired 10,000 shares of common stock for cash at $14 per share Oct. 12 Sold 1.500 treasury shares at $19 per share Nov. 21 sued 5.000 shares of common stock at $14 per share Dec 28 Sold 1.200 treasury shares at 59 per share 31 Oosed net income of $95,000 to the Retained Earnings account Required Prepare journal entries for the given transactions and post them to the T-accounts. Do not prepare the journal entry for the Dec. 31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders' equity accounts Prepare the stockholders' equity section of the balance sheet at December 31. journal entries T-Accounts Stockholder's equity section General Journal Date Description Debit Credit Jan12 Memorandum) Common Stock split 3 for 1 Mar 31 Bonds Payable Premium on Bonds Payable ONS 0 Common Stock 06 0x Paid-in-Capital in Excess of Par Value Common Stock 0x To record conversions of bonds Jun.01 Equipment 0 Preferred Stock Ov 0x Paid-in-Capital in Excess of Par Value Preferred Stock 0~ 0x Issued preferred stock in exchange for equipment Sept.01 Treasury Stock-Comman 0% 0~ ~ ax Cash Purchased treasury stock Oct.12 Cash Treasury Stock-Common Pad-in-Capital from Treasury Stock = 0x 36 0~ 0x Sold treasury stock Nov 21 Cash Common Stock 10~ Ox Paid-in Capital in Excess of Par Value Common Stock # Issued common stock Dec 28 Cash Paid-in-Capital from Treasury Stock Treasury Stock Common To record sale of treasury stock 0x 0x $ journal entries T-Accounts Stockholder's equity section Cash Bonds Payable Premium on Bonds Payable Sept 01 0~ 0x Mar 31 0% 05 Mar 31 Oct.12 0% Nov 21 0x Dec 28 0% 0 Jun 01 Equipment 0x Preferred Stock Beg ba Jun 01 500,000 0 0 0x Beg bal Jan 12 Common Stock 600,000 for 1 spl 0x Mar 31 0x Nov 21 Bal 0x 0x Paid-in-Capital in Excess of Par Value -Preferred Stock Paid-in-Capital in Excess of Par Value Common Beg bal 24,000 Jun01 0 0x Beg, bal Bal 05 0x Mar 31 0~ Stock 360,000 0x Oct 12 Dec 28 Paid-in-Capital from Treasury Stock 0x 0~ Nov 21 0~ Treasury Stock Common Sept 01 0x 0.12 0. ON Dec 28 30 0x Bal 0x 0 Retained Earnings Beg bal 325,000 Dec 31 But 0~ Stockholder's equity section Journal entries T-Accounts Do not use negative signs with your answers. Paid in Capital Preferred Stock Common Stock Additional Paid-in-Capital Stockholders' Equity 0x 0x Paid-in-Capital in Excess of Par value-Preferred Stock 0x Paid-in-Capital in Excess of Par value-Common Stock Paid-in-Capital from Treasury Stock = 0x 0x Total Paid-in-Capital Retained Earnings Less: Treasury Stock Common Total Stockholders' Equity Check 0x 0x 0x 0x $ 0x