The following balances appear in the accounts of Iron Corporation as of December 31, 2003: Retained earnings,

The following balances appear in the accounts of Iron Corporation as of December 31, 2003:

Transcribed Image Text:

Retained earnings, January 1, 2003. $128,000 Prior-period adjustment (tax adjustment for 2001). (57,000) Net income for 2003. 60,000 Preferred stock (7 %, $12 par, 20,000 shares authorized, 5,000 shares issued and outstanding) Common stock ($5 par, 100,000 shares authorized, 16,000 shares issued, 200 held as treasury stock) 60,000 80,000 Paid-in capital in excess of par, preferred stock. Paid-in capital in excess of par, common stock. Treasury stock Cash dividends (declared during 2003) 13,400 42,800 3,600 10,000 Required: 1. Prepare the statement of retained earnings for Iron Corporation as of December 31, 2003. 2. Prepare the stockholders' equity section of Iron Corporation's balance sheet as of Decem- ber 31, 2003.