Reference no: EM13548901

The following is West Valley Company s stockholders equity section of the balance sheet on December 31, 2002:

Preferred stock (8%, $60 par, noncumulative, 16,000 shares authorized,
8,000 shares issued and outstanding)	$480,000
Common stock ($10 par, 120,000 shares authorized,
80,000 shares issued and outstanding)	800,000
Paid-in capital in excess of par, preferred stock	130,000
Paid-in capital in excess of par, common stock	252,000
Retained earnings.	330,000

Required

1. Journalize the following 2003 transactions:

a. Issued 2,000 preferred shares at $70 per share.

b. Reacquired 1,000 common shares for the treasury at $13 per share.

c. Declared and paid a $2-per-share dividend on common stock in addition to paying the required preferred dividends. (Note: Debit Retained Earnings directly.)

d. Reissued 600 treasury shares at $14 per share.

e. Reissued the remaining treasury shares at $12 per share.

f. Earnings for the year were $92,000, including $200,000 of revenues and $108,000 of expenses.

2. Prepare the stockholders equity section of the balance sheet for the company at December 31, 2003.