Reference no: EM132483209

Sunland Company has two classes of capital stock outstanding: 9%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were included in stockholders' equity.

Preferred Stock, 141,100

shares$ 2,822,000

Common Stock, 1,979,000

shares9,895,000

Paid-in Capital in Excess of Par-Preferred Stock194,000

Paid-in Capital in Excess of Par-Common Stock26,547,000

Retained Earnings4,497,000

The following transactions affected stockholders' equity during 2021.

• Jan. 127,400 shares of preferred stock issued at $22 per share.
• Feb. 150,700 shares of common stock issued at $22 per share.
• June 12-for-1 stock split (par value reduced to $2.50).
• July 127,600 shares of common treasury stock purchased at $10 per share.
• Sunland uses the cost method.
• Sept. 159,500 shares of treasury stock reissued at $12 per share.
• Dec. 31The preferred dividend is declared, and a common dividend of 48¢ per share is declared
• .Dec. 31Net income is $2,134,000.

Question 1: Prepare the stockholders' equity section for Sunland Company at December 31, 2021.