Question: The stockholders equity section of Ruff Corporation s balance sheet on

The stockholders’ equity section of Ruff Corporation’s balance sheet on December 31, 2011, follows.
Contributed capital
Common stock, $2 par value, 250,000 shares authorized,
200,000 shares issued and outstanding ........ $ 400,000
Additional paid-in capital ............. 600,000
Total contributed capital ............... $1,000,000
Retained earnings ................. 2,100,000
Total stockholders’ equity ............. $3,100,000
Prepare a statement of stockholders’ equity for the year ended December 31, 2012, assuming the following transactions occurred in sequence in 2012:
a. Issued 5,000 shares of $100 par value, 9 percent cumulative preferred stock at par after obtaining authorization from the state.
b. Issued 20,000 shares of common stock in connection with the conversion of bonds having a carrying value of $300,000.
c. Declared and issued a 2 percent common stock dividend. The market value on the date of declaration was $14 per share.
d. Purchased 5,000 shares of common stock for the treasury at a cost of $16 per share.
e. Earned net income of $230,000.
f. Declared and paid the full year’s dividend on preferred stock and a dividend of $0.40 per share on common stock outstanding at the end of the year.
g. Had foreign currency translation adjustment of minus $50,000.

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