Thomsom corporation

Stockholder's Equity

December 31,2013

Stockholder's Equity

Common stock (40,000 authorized, 25,000 issued and

outstanding with par value of $10 per share.) $ 250,000.00

Excess paid in capital on common stock $ 125,000.00

Retained Earnings $ 500,000.00

Total stockholder's equity $ 875,000.00

During the current year, Thomson had the following stock transactions:

The company authorizes the sale of 10% preferred stock, 50,000 shares at par value of $50.

Sold 20,000 shares of preferred stock at $75 per share.

Purchased 5,000 shares of common stock at $20 per share for cash.

Declared and distributed a 2% stock dividend to common stockholders when market price was $25 per share.

Declared and paid $90,000 in cash dividends to common and preferred stockholders.

Sold 2,000 shares of treasury stock at $16 per share.

Net loss is $134,000.

Required:

Prepare the stockholders equity section of the balance sheet for yearend 2013 and steps how to arrive to those balances