Question:
Pepper Company reported the following balances at December 31, 2013: common stock $400,000; paid-in capital in excess of par common stock $220,000; and retained earnings $250,000. During 2014, the following transactions affected stockholder's equity.
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1.
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Issued preferred stock with a par value of $125,000 for $165,000.
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2.
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Purchased treasury stock (common) for $40,000.
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3.
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Earned net income of $140,000.
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4.
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Declared and paid cash dividends of $48,000.
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Instructions
Prepare the stockholders' equity section of Pepper Company's December 31, 2014, balance sheet.