Problem D - 111 - Corporation Entries ( 28 points ) Zippo Corporation stock holders' equity consisted of the following on January 1 , 2012 : Stock holders' Equity Paid - in capital Capital stock 6% Preferred stock , $100 par value , cumulative , 50, 000 shares authorized , 30 , 000 shares issued and outstanding $ 3, 000 , 000 Common stock , no par , $20 stated value , 1, 000 , 000 shares authorized , 500, 000 shares issued and outstanding 10 , 000 , 000 Total capital stock 13, 000 , 000 Additional paid - in capital* In excess of par value - preferred $300 , 000 In excess of stated value - common 600, 000 900, 000 Total paid - in capital 13, 900 , 000 Retained earnings ( Note A ) 4, 100, 000 Total stockholders ' equity $ 18, 000, 000 Note A : Preferred dividends are in arrears for 201 1 . Instructions : Prepare the appropriate journal entries , if any , for the following transactions in 2012 . You may omit journal entry explanations but you should show computations