Stockholders' Equity Transactions, Journal Entries, and T-Accounts The stockholders' equity of Xeltron Corporation at January 1 follows: 9% Preferred stock, $110 par value, 20,000 shares authorized; 6,000 shares issued and outstanding Common stock, $2 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 $660,000 $80,000 400,000 800,000 760,000 $2,700,000 The following transactions, among others, occurred during the year: Jan. 1 Announced a 2-for-1 common stock split, reducing the par value of the common stock to $1 per share. The authorization was increased to 300,000 shares. Mar. 31 Converted $110,000 face value of convertible bonds payable (the book value of the bonds was $114,000) to common stock. Each $1,000 bond converted to 125 shares of common stock. June 1 Acquired equipment with a fair market value of $35,000 in exchange for 200 shares of preferred stock. Sept. 1 Acquired 10,000 shares of common stock for cash at $21 per share. Nov. 21 Issued 5,000 shares of common stock at $23 cash per share. Dec. 28 Sold 1,000 treasury shares at $24 per share. Dec. 31 Closed net income of $210,000 to the Retained Earnings account.