On November 1 2009 Dazzling Desserts Corporation had 300 000 shares
On November 1, 2009, Dazzling Desserts Corporation had 300,000 shares of $1 par common stock issued and outstanding. The shareholders’ equity accounts at November 1, 2009, had the following balances:
Common stock ........... $ 300,000
Additional paid-in capital ....... 2,700,000
Retained earnings .......... 3,500,000
The following transactions occurred during the fiscal year ended October 31, 2010:
a. On November 30, issued 30,000 shares of 7%, $95 par, cumulative preferred stock at $100.
b. On December 31, reacquired 5,000 shares of common stock for $12 per share.
c. On January 1, declared a cash dividend of $0.75 per share on the common stock outstanding, payable on January 31, 2010, to shareholders of record on December 15.
d. Declared and paid dividends to preferred shareholders on March 1, 2010.
e. Net income for the year ended October 31, 2010, was $675,000.

Requirement
Prepare the shareholders’ equity section of Dazzling Desserts’ balance sheet at October 31, 2010.

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