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II. SHAREHOLDERS EQUITY On December 31, 2015 the shareholders' equity section of Agnes Inc.'s balance...

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Accounting

II. SHAREHOLDERS EQUITY

On December 31, 2015 the shareholders' equity section of Agnes Inc.'s balance sheet appeared as presented below:

Common stock, $6 par, 800,000 shares

$ 4,800,000

Issued and outstanding

Paid-in capital in excess of par

32,000,000

Retained Earnings

28,000,000

$64,800,000

During 2016, the following events occurred:

1/15: Agnes declared and distributed a 10% stock dividend when the market price of the stock was $55 per share.

7/5: Agnes issued for $4,000,000 a combination of 50,000 shares of common and 20,000 shares of 8%, $100 par preferred stock. The market value of the common and preferred shares was $50 and $125, respectively at the date of issuance.

9/1: Agnes split its common 3:1.

10/9: Agnes declared and distributed a 35% stock dividend when the market price of the stock was $25 per share.

12/31: Agnes declared a $2 per share cash dividend payable 3/1/17 for common shareholders and paid its preferred dividend in full.

Prepare all entries for the events above AND based only on these events prepare the shareholders' equity section of Agnes Inc.'s balance sheet on December 31, 2016. Make sure you keep track of the number of common and preferred shares after each transaction, as well as the par values.

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