Question: ayayai company reported the following amounts in the stockholders equity...
Ayayai Company reported the following amounts in the
stockholders’ equity section of its December 31, 2016, balance
|Preferred stock, 10%, $100 par (10,000 shares authorized, 1,800 shares issued)||$180,000|
|Common stock, $5 par (93,000 shares authorized, 18,600 shares issued)||93,000|
|Additional paid-in capital||130,000|
During 2017, Ayayai took part in the following transactions concerning stockholders’ equity.
|1.||Paid the annual 2016 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2016.|
|2.||Purchased 1,500 shares of its own outstanding common stock for $41 per share. Ayayai uses the cost method.|
|3.||Reissued 800 treasury shares for land valued at $35,600.|
|4.||Issued 550 shares of preferred stock at $104 per share.|
|5.||Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $46 per share.|
|6.||Issued the stock dividend.|
Declared the annual 2017 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2018.