Question: The following is the stockholders equity of Piesco Corporation on

The following is the stockholders’ equity of Piesco Corporation on October 1, 201X:

1. Journalize the transactions in general journal form.
2. Prepare the stockholders’ equity section of the balance sheet using the legal capital approach as of December 31, 201X.
The working papers that accompany this text have accounts to update ledger balances. Be sure to put in the beginning balances. Use the Blueprint as a guide to the setup of stockholders’ equity.
Oct. 3 Declared a $0.50 per share dividend on the common stock and a $1.20 per share dividend on the preferred. (The Dividends Payable account will record amounts for both common and preferred, although companies could set up Common Dividend Payable and Preferred Dividend Payable accounts.)
Nov. 15 Dividends were paid that were declared on October 3.
18 Purchased 340 shares of its own common stock at $14 per share.
25 Reissued 90 shares at $17 per share.
26 Declared a 15% stock dividend on common. Market value of stock is $48 per share.
Dec. 29 Distributed stock dividend declared on November 26.
30 Reissued 80 shares of treasury stock at $12 per share.
31 Closed the Income Summary account, which had net income of $89,000, to RetainedEarnings.
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