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Exercise 1: Equity Slacks 5th Avenue has two classes of stock: $100 par value preferred stock and $1 common stock. As of the beginning of 2018, 1,000 shares of common stock have been issued and no shares of preferred stock have been issued. The following transactions affect stockholder's equity during 2018: value par 1/15: Issue 2,000 additional shares of common stock for $20 2/1: Issue 100 shares of preferred stock for $110 per share 6/1: Declare a cash dividend of $5 per share on preferred stock and $1 per share on common stock to all stockholders of record on 6/15. 6/30: Pay the cash dividend declared on 6/1. share per 10/1: Purchase 200 shares of common treasury stock for $25 per share. 11/1: Reissue 100 shares of treasury stock purchased on 10/1 for $28 per share. Slacks 5th Avenue has the following beginning balances in its stockholders' equity accounts on 1/1/2018: Preferred Stock, $0; Common Stock, $1,000; Additional Paid-In Capital, $14,000; and Retained Earnings, $5,000. Net income for the year ended 12/31, 2008 is $4,000. Required: Prepare the statement of stockholder's equity with the format given below: Slacks 5th Avenue Statement of Stockholders' Equity For the Year Ended December 31, 2018 Total Equity Treasury Stock Preferred Common Add. Paid-in Retained Stock Capital Earnings Stock Balance, 1/1 Issued common stock Issued preferred stock Cash dividends Purchase treasury stock Reissue treasury stock Net income Balance, 12/31

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