Reference no: EM133116522
Question - Teal 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. Teal 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 Teal Company at December 31, 2021.