The following equity data relates to Ike's Tuba Corporation (ITC) for 20Y2:

A 10% stock dividend was declared and issued to common stockholders in January when the stock was trading for $4 per share

Common stock cash dividends of $0.10 per share were declared and paid in March

80,000 shares were issued from Treasury Stock in April at a price of $2 each

100,000 shares of common stock were repurchased in September at a price of $6 each

200,000 shares of common stock were exchanged for a building when the shares were trading at $8. The building had an appraised value of $2 million. The shares are actively traded.

Net Income for the year was $600,000

Please complete the Stockholders' Equity section for ITC as of the end of 20Y2. Remember that cash and stock dividends are not paid on shares that are in treasury.

Account

12/31/Y1

12/31/Y2 ?

Common Stock, $1 par

$5,000,000

Additional Paid-In Capital

$20,000,000

Additional Paid-In Capital - Treasury Stock

$20,000

Retained Earnings

$6,000,000

Treasury Stock (at cost of $3 per share)

($300,000)

Total Equity

$30,720,000

You may use t-accounts to organize your work: