Reference no: EM132708236

Question - Sheridan Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were included in stockholders' equity.

Preferred Stock, 149,400 shares $2,988,000

Common Stock, 2,019,000 shares 10,095,000

Paid-in Capital in Excess of Par-Preferred Stock 206,000

Paid-in Capital in Excess of Par-Common Stock 26,815,000

Retained Earnings 4,485,000

The following transactions affected stockholders' equity during 2021.

Jan. 1, 31,100 shares of preferred stock issued at $24 per share. Feb. 1, 50,500 shares of common stock issued at $21 per share. June 1, 2-for-1 stock split (par value reduced to $2.50). July 1, 32,900 shares of common treasury stock purchased at $11 per share. Sheridan uses the cost method. Sept. 15, 9,000 shares of treasury stock reissued at $12 per share. Dec. 31, The preferred dividend is declared, and a common dividend of 52¢ per share is declared. Dec. 31 Net income is $2,078,000.

Required - Prepare the stockholders' equity section for Sheridan Company at December 31, 2021.