Unifying Concepts: Stockholders Equity Icon Corporation was organized during 2010. At the end of 2011, the equity section of its balance sheet appeared as follows: Contributed capital: Preferred stock (6%, $20 par, 10,000 shares authorized, 5,000 shares issued and outstanding). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 Common stock ($10 par, 50,000 shares authorized, 11,000 shares issued, 10,000 outstanding) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,000 Paid-in capital in excess of par, preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 Total contributed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $230,000

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000

Total contributed capital plus retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . $330,000 Less treasury stock (1,000 shares of common at cost) . . . . . . . . . . . . . . . . . . . . . . . . (12,000) Total stockholders equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $318,000

During 2012, the following stockholders equity transactions occurred (in chronological sequence): a. Issued 500 shares of common stock at $13 per share. b. Reissued 500 shares of treasury stock at $13 per share. c. Issued 1,000 shares of preferred stock at $25 per share. d. Reissued 500 shares of treasury stock at $10 per share. e. Declared a dividend large enough to meet the current-dividend preference of the preferred stock and to pay the common stockholders $2 per share. Dividends are recorded directly in the retained earnings account. f. Closed net income of $65,000 to Retained Earnings. Revenues were $400,000; expenses were $335,000. Required: 1. Journalize the transactions. 2. Prepare the stockholders equity section of the balance sheet at December 31, 2012.