Question

Pearl Company has two classes of capital stock outstanding: 7%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were included in stockholders’ equity.

Preferred Stock, 146,100 shares		$ 2,922,000
Common Stock, 1,982,000 shares		9,910,000
Paid-in Capital in Excess of Par—Preferred Stock		199,000
Paid-in Capital in Excess of Par—Common Stock		26,630,000
Retained Earnings		4,454,000

The following transactions affected stockholders’ equity during 2021.

Jan. 1		30,100 shares of preferred stock issued at $23 per share.
Feb. 1		48,800 shares of common stock issued at $21 per share.
June 1		2-for-1 stock split (par value reduced to $2.50).
July 1		28,700 shares of common treasury stock purchased at $10 per share. Pearl uses the cost method.
Sept. 15		9,400 shares of treasury stock reissued at $11 per share.
Dec. 31		The preferred dividend is declared, and a common dividend of 51¢ per share is declared.
Dec. 31		Net income is $2,093,000.

Prepare the stockholders’ equity section for Pearl Company at December 31, 2021. (Enter account name only and do not provide descriptive information.)

Answer 1

stockholder equity section
shareholders equity
preferred stock	3524000
common stock	10154000
Total capital stock		13678000
additional paid in capital in excess of par
preferred stock	289300
common stock	27410800
treasury stock	9400
Total paid in capital in excess of par		27709500
Total paid in capital		41387500
Retained earning		4238747
Total paid in capital and retained earning
less: treasury stock	-193000
Total stockholder equity		45433247