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Year 1: Leventhal Company issued 800 $12 par value common shares for $40,000 cash on...

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Accounting

Year 1:

Leventhal Company issued 800 $12 par value common shares for $40,000 cash on Jan. 1, Year 1. On the same date, the firm issued 400 of its $10 per share par value 7% preferred shares for $4,800 cash. These preferred shares are cumulative and participating. In Year 1, Leventhal had Net Income of $11,000.

Year 2:

On January 1, Year 2, Leventhal distributed a 7% common stock dividend when the common shares each had a fair market value of $70. Year 2 Net Income was $15,000.

When doing calculations round fractional shares or dollar values to the nearest whole number. Round your answers to the nearest whole dollar. Enter your answers without '$' signs, without commas and without '+' or '-' signs.

Year 3:

On January 1, Year 3, the firm issued a 26% common stock dividend when the fair market value was $75 per share. Round any fractional shares to the nearest whole number of shares.

Net Income in Year 3 was $28,000. Cash dividends declared and paid at the end of Year 3 were $21,000

What is the balance in this account at December 31, Year 1?

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