Use the data from E8-34A to prepare the shareholders’ equity section of the balance sheet at year end. Net income for the year was $150,000.

In E8-34A On the first day of the fiscal year, Music Productions Corporation had 210,000 shares of $2 par common stock issued (at par) and outstanding, and the retained earnings balance was $900,000. Show how each of the following transactions would affect the accounting equation:

1. Issued 5,000 additional shares of common stock for $10 per share

2. Declared and distributed a 5% stock dividend when the market price was $10 per share

3. Issued 15,000 additional shares of common stock for $12 per share

4. Declared a cash dividend on outstanding shares of $1.30 per share

5. Paid the dividend declared in item (4)

6. Purchased 5,000 shares of treasury stock for $14 per share

7. Sold 2,000 shares of treasury stock for $16 per share

8. Sold 2,500 shares of treasury stock for $15 per share

9. Declared 2-for-1 stock split