Reference no: EM131793035

Preferred stock ($100 par value, 5% non cumulative, 50,000 shares authorized, 10,000 shares issued and outstanding .....$1,000,000

Common stock ($10 par value, 200,000 shares authorized 100,000 shares issued & outstanding $ 1,000,000

Paid-in capital in excess of par, Common ..150,000

Retained Earnings 700,000

Jan 1 XYZ declared 5% stock dividend on its Common stock when the market value of the common stock was $15 per share. Stock dividend were distributed on Jan 31 to shareholders as of Jan 25

Feb 15 XYZ reissued 1,000 shares of common stock for $20 each

Mar 31 XYZ reissued 250 shares of treasury stock for $25 each

July 1 XYZ reissued 500 shares of treasury stock for $16 each

Oct 1 XYZ declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on Oct 15

Dec 15 XYZ split common stock 2 shares for 1

Net Income for 2015 was $275,000

Prepare journal entries for the transaction listed above

Prepare a stockholder's section of a classified balance sheet as of Dec 31, 2015