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  3. ayayai company reported the following amounts in the stockholders equity...

Question: ayayai company reported the following amounts in the stockholders equity...

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Ayayai Company reported the following amounts in the stockholders’ equity section of its December 31, 2016, balance sheet.

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
Retained earnings 467,000
   Total $870,000


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.
7.

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.

No. Account Titles and Explanation Debit Credit 1. Dividends Payable - Common Stock 37200 Dividends Payable Preferred Stock 18000 Cash 55200 2. Treasury Stock 61500 Cash 61500 3. Land 35600 Treasury Stock 32800 Paid-in Capital from Treasury Stock 2800 4. Cash 57200 Preferred Stock 55000 Paid-in Capital in Excess of Par Preferred Stock 2200 Retained Earnings 82340 Common Stock Dividend Distributable 8950 Paid-in Capital in Excess of Par - Common Stock 73390 6. Common Stock Dividend Distributable 8950 Common Stock 8950 7. Retained Earnings 62880 Dividends Payable Preferred Stock 23500 Dividends Payable - Common Stock 39380

Prepare the December 31, 2017, stockholders equity section. Assume 2017 net income was $327,000 AYAYAI COMMPANY Stockholders Equity December 31, 2017 Capital Stock Preferred Stock 235000 Common Stock 101950 Total Capital Stoc 336950 Additional Paid-in Capital 208390 Total Paid-in Capital 208390 Retained Earnings 321780 Total Paid-in Capital and Retained Earnings 530170 Less 28700 Treasury Stock Total Stockholders Equity 808500

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