Keystone Company has two classes of capital stock outstanding: 10%, $40 par preferred and $1 par common.

Question:

Keystone Company has two classes of capital stock outstanding: 10%, $40 par preferred and $1 par common. During the fiscal year ended November 30, 2013, the company was active in transactions affecting the stockholders' equity. Page 13-71 summarizes these transactions.
Type of Transaction..........................................Number of Shares......Price per Share
(a) Issue of preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000....................$47
(b) Issue of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000.....................76
(c) Reacquisition and retirement of preferred stock . . . . . . . . . . . .3,000.....................50
(d) Purchase of treasury stock-common (reported at cost) . . . . 15,000.....................80
(e) Stock split-common (par value reduced to $0.50) . . . . . . . . 2 for 1
(f) Reissuance of treasury stock-common (after stock split) . . . 15,000.....................56
Balances of the accounts in the Stockholders' Equity section of the November 30, 2012, were
Preferred stock, 40,000 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,600,000
Common stock, 250,000 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000
Paid-in capital in excess of par-preferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
Paid-in capital in excess of par-common . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,250,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 960,000
Dividends were paid at the end of the fiscal year on the at $1.20 per share and on the preferred stock at the preferred rate. Net income for the year was $800,000.
Instructions:
Based on the preceding data, prepare the Stockholders' Equity section of the as of November 30, 2013. For shares retired, assume that the most recently issued shares are retired first.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...