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Waterway Company reported the following amounts in the stockholders' equity section of its December 31, 2019, balance sheet. Preferred stock, 10%, $100 par (10,000
Waterway Company reported the following amounts in the stockholders' equity section of its December 31, 2019, balance sheet. Preferred stock, 10%, $100 par (10,000 shares authorized, 1,800 shares issued) Common stock, $5 par (101,000 shares authorized, 20,200 shares issued) Additional paid-in capital Retained earnings Total $180,000 101,000 119,000 447,000 $847,000 During 2020, Waterway took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2019 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2019. 2. 3. Purchased 1,500 shares of its own outstanding common stock for $37 per share. Waterway uses the cost method. Reissued 700 treasury shares for land valued at $28,400. 4. Issued 500 shares of preferred stock at $106 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $48 per share. Issued the stock dividend. 6. 6 N 7. Declared the annual 2020 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2021.
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