The following is the stockholders' equity of Laker Corporation at January 1: 8 Percent preferred stock, $40 par value, 10,000 shares authorized; 7,000 shares issued and outstanding $280,000 Common stock, $20 par value, 50,000 shares authorized; 25,000 shares issued and outstanding 500,000 Paid-in capital in excess of par value-Preferred stock 70,000 Paid-in capital in excess of par value-Common stock 385,000 Retained earnings 238,000 Total Stockholders' Equity $1,473,000 The following transactions, among others, occurred during the year: Jan. 15 Issued 2,000 shares of preferred stock for $65 cash per share. 20 Issued 4,000 shares of common stock at $40 cash per share. 31 Converted $20,000 face value of convertible bonds payable (the book value of the bonds is $18,500) to common stock. Each $1,000 bond converted to 25 shares of common stock. May 18 Announced a 2-for-1 common stock split, reducing the par value of the common stock to $10 per share. The authorization was increased to 100,000 shares. June 1 Acquired equipment with a fair market value of $50,000 in exchange for 2,000 shares of common stock. Sept. 1 Purchased 3,500 shares of common stock as treasury stock at $19 cash per share. Oct. 12 Sold 900 treasury shares at $21 per share. Dec. 22 Issued 600 shares of preferred stock for $59 cash per share. 28 Sold 1,100 of the remaining treasury shares at $18 per share. 31 Closed net income of $150,000 to the Retained Earnings account.