Reference no: EM132984461

Question - On January 1, 2022, Skysong, Inc. had the following stockholders' equity balances.

Common Stock (532,000 shares issued) $2,128,000

Paid-in Capital in Excess of Par-Common Stock 540,000

Common Stock Dividends Distributable 319,200

Retained Earnings 577,000

During 2022, the following transactions and events occurred.

1. Issued 79,800 shares of $4 par value common stock as a result of 15% stock dividend declared on December 15, 2021.

2. Issued 31,500 shares of common stock for cash at $6 per share.

3. Purchased 21,500 shares of common stock for the treasury at $7 per share.

4. Declared and paid a cash dividend of $118,000.

5. Sold 8,200 shares of treasury stock for cash at $7 per share.

6. Earned net income of $342,000.

Required - Prepare a stockholders' equity statement for the year.