PLEASE EXPLAIN SOLUTIONS

Problem 7 The Shareholder Equity section of Aires-Michelle Corporation had the following information on December 31, 2016. $525,000 Preferred Stock 8%, $70 par, cumulative, 10,000 shares authorized 7,500 shares issued and outstanding Common Stock, $22 par, 500,000 shares authorized 32,000 shares issued Paid- in capital in excess of par preferred stock Paid-in capital in excess of par common stock Retained Earnings -162656 Total Shareholder Equity 56830 704,000 1626 125,000 396,000 $2,250,000 $4,000,000 The following transactions related to shareholder equity occurred during 2017: Jan 3 Issued 10,000 shares of common stock for $32 per share 1000x32=320 June 1 Acquired a machine with a market value of $66,000 in exchange for 2,200 shares of 6000 - common stock 22000 Sept 22 Declared a 11.5% stock dividend on all common stock outstanding, the market price was $32 Nov 1 Acquired 750 shares of common stock as treasury stock at $27 per share Net Income of $800,000 was reported and $387,344 cash dividends were also paid during the year. d+RE Required: Prepare the Shareholder Equity section as of 12/31/2017 to reflect the transactions above. d 7,500 shares . A 25000 C 125000 I D Preferred Stock 8%, $70 par, 10,000 shares authorized 7,500 shares issued and outstanding Common Stock , $22 par, 500,000 shares authorized 49,283 shares issued Paid- in capital in excess of par preferred stock Paid-in capital in excess of par common stock Retained Earnings Treasury Stock (750 shares) Total Shareholder Equity Total common stock shares issued Total common stock shares issued and outstanding Earnings Per Share