Fresh Produce Foods, Inc., is authorized to issue 3,750,000 shares of $5.00 par common stock.
In its initial public offering during 2012, Fresh Produce issued 360,000 shares of its $5.00 par common stock for $5.50 per share. Over the next year, Fresh Produce’s stock price increased, and the company issued 400,000 more shares at an average price of $9.50.
During 2014, the price of Fresh Produce’s common stock dropped to $7.50, and Fresh Produce purchased 59,000 shares of its common stock for the treasury. After the market price of the common stock rose in 2015, Fresh Produce sold 45,000 shares of the treasury stock for $10.00 per share.
During the five years 2012 to 2017, Fresh Produce earned net income of $940,000 and declared and paid cash dividends of $245,000. Stock dividends of $441,630 were distributed to the stockholders in 2013, with $315,450 credited to common stock and $126,180 credited to additional paid-in capital. At December 31, 2017, total assets of the company are $14,500,000, and liabilities add up to $8,017,500.

Requirement
Show the computation of Fresh Produce’s total stockholders’ equity at December 31, 2017. Present a detailed computation of each element of stockholders’ equity. Use the end-of chapter summary problem on pages 612–613 to format your answer.