Exercise 15-18 (Part Level Submission)
Cheyenne Company reported the following amounts in thestockholders’ equity section of its December 31, 2016, balancesheet.
| Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000shares issued) | | $200,000 |
| Common stock, $5 par (107,000 shares authorized, 21,400 sharesissued) | | 107,000 |
| Additional paid-in capital | | 127,000 |
| Retained earnings | | 491,000 |
| Â Â Â Total | | $925,000 |
During 2017, Cheyenne took part in the following transactionsconcerning stockholders’ equity.
| 1. | | Paid the annual 2016 $10 per share dividend on preferred stockand a $2 per share dividend on common stock. These dividends hadbeen declared on December 31, 2016. |
| 2. | | Purchased 1,800 shares of its own outstanding common stock for$41 per share. Cheyenne uses the cost method. |
| 3. | | Reissued 800 treasury shares for land valued at $33,700. |
| 4. | | Issued 520 shares of preferred stock at $105 per share. |
| 5. | | Declared a 10% stock dividend on the outstanding common stockwhen the stock is selling for $44 per share. |
| 6. | | Issued the stock dividend. |
| 7. | | Declared the annual 2017 $10 per share dividend on preferredstock and the $2 per share dividend on common stock. Thesedividends are payable in 2018. |
