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P11-4A. Stockholders' Equity: Transactions and Balance Sheet Presentation The si of Peak Corporation at January 1 follows: stockholders up the share transactions were Betained Earning Corporation as of Jaw P11-6A. Common stock. $1 Paid in capital in ex Retained earrings Percent preferred stock. $100 par value, 20,000 shares authorized: 5,000 shares issued and outstanding........ Common stock. $15 par value, 100,000 shares authorized: 40,000 shares issued and outstanding............... Paid-in capital in excess of par value-Preferred stock... Paid-in capital in excess of par value-Common stock. Retained earnings ........ Total Stockholders' Equity ............... . During the year, 325.000 $1.800.000 June 7 Decla 28 Issue Dec. 5 Dec The following transactions, among others, occurred during the year: 26 Pai Required a. Prepare b. Prepare P11-7A. Retained at January Jan. 12 Announced a 4-for-1 common stock split, reducing the par value of the common stor to $3.75 per share. The authorization was increased to 400,000 shares. Mar 31 Converted $40,000 face value of convertible bonds payable (the book value of the bonds was $43,000) to common stock. Each $1.000 bond converted to 125 shares of common stock. June | Acquired equipment with a fair market value of $90,000 in exchange for 500 shares of preferred stock. Sept. 1 Acquired 10,000 shares of common stock for cash at $10 per share. Oct. 12 Sold 1,500 treasury shares at $12 per share. Nov. 21 Issued 5.000 shares of common stock at $11 cash per share. Dec. 28 Sold 1,200 treasury shares at $9 per share. 31 Closed net income of $105,000 to the Retained Earnings account. 6 Perce 25,00 Comm Issu Paid- Reta The Required a. Set up T-accounts for the stockholders' equity accounts as of the beginning of the year and enter the January 1 balances. b. Prepare journal entries for the given transactions and post them to the T-accounts (set up any additional T-accounts needed). Do not prepare the journal entry for the Dec. 31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders' equity accounts. c. Prepare the stockholders' equity section of the balance sheet at December 31. 5A. Stockholms quity Information and Entries from Comparativo Data Comparative stockhold- ers' equity sections from two successive years of balance sheets from Farrow, Inc., are as follows

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