Berlin Company is a public company whose shares are traded in the over the counter (OTC) market. At December 31, 20X6, Berlin had 6,000,000 authorized shares of $5 par value common stock, of which 2,000,000 shares were issued and outstanding. Berlin also had the following stockholders' equity accounts on their balance sheet at December 31, 20X6 (all had their normal balances) BERLIN COMPANY STOCKHOLDERS' EQUITY ACCOUNTS AT DECEMBER 31, 20X6 Common Stock $ Additional Paid In Capital Retained Earningst 10,000,000 7,500,000 3,250,000 Transactions that occurred during 20X7 and other information relating to the stockholders' equity accounts are attached. REQUIRED: (1) (2) Prepare a statement of changes in stockholders' equity for the year ending December 31, 20X7. Assume that comparative financial statements are not being prepared Prepare the stockholders' equity section of Berlin's balance sheet at December 31, 20X7. Compute the book value per share of common stock at December 31, 20X7. Round your answer to the nearest cent. (3) BERLIN COMPANY TRANSACTIONS AFFECTING STOCKHOLDERS' EQUITY ACCOUNTS FOR YEAR ENDING DECEMBER 31, 20X7 (1) On January 5, 20X7, Berlin issued at $54 per share 100,000 shares of $50 par value, 9% cumulative and convertible preferred stock. Each share of preferred stock is convertible, at the option of the holder, into two shares of common stock. Berlin had 250,000 authorized shares of preferred stock. The preferred stock has a liquidation value of $55 per share. (2) On February 1, 20X7, Berlin reacquired 20,000 shares of its common stock for $16 per share. Berlin uses the cost method to account for treasury stock. (3) On March 15, 20X7, Berlin paid $200,000 for 10,000 shares of common stock of Hamburg, Inc., a public company whose stock is traded on a national stock exchange. This stock was classified as available for sale and had a fair market value of $15 per share on December 31, 20X1. (4) On April 30, 20X7, Inc. had completed an additional public offering of 500,000 shares of its $5 par value common stock. The stock was sold to the public at $12 per share, net of offering costs. (5) On June 17, 20X7, Berlin declared a cash dividend of $1 per share on common stock, payable on July 10, 20X7, to stockholders of record on July 1, 20X7. (6 On Novembe: 6, 20X7, Berlin sold 10,000 shares of treasury stock for $21 per share. (7) On December 7, 20X7, Berlin declared the annual cash dividend on preferred stock, payable on January 7, 20X8, to stockholders of record on December 31, 20x7. (8) On January 17, 20X8, before the books were closed for 20X7, Berlin became aware that the ending inventories at December 31, 20X6, were overstated by $200,000. The after tax effect on 20X6 net income was $140,000. The appropriate correcting entry was recorded the same day. (9) After correction of the ending inventories, net income for 20X7 was $2,250,000