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Pina Company reported the following amounts in the stockholders’ equity section of its December 31, 2019, balance sheet. Preferred stock, 13%, $ 100 par (100,000 shares authorized, 28,000 shares issued) $ 2,800,000 Common stock, $ 1 par (1,000,000 sha

Pina Company reported the following amounts in the stockholders’ equity section of its December 31, 2019, balance sheet.  

Preferred stock,  13%, $ 100 par (100,000 shares authorized,  28,000 shares issued)$ 2,800,000 

Common stock, $ 1 par (1,000,000 shares authorized,  307,000 shares issued) 307,000 

Additional paid-in capital-common 858,000 

Retained earnings 1,379,000    

Total $ 5,344,000  


During 2020, Pina took part in the following transactions concerning stockholders’ equity.  

.1.Paid the annual 2019 dividend on preferred stock and a $ 0.50 per share dividend on common stock. These dividends had been declared on December 31, 2019. 

2.Purchased  1,000 shares of its own outstanding common stock for $ 7 per share. Pina uses the cost method. 

3.Reissued  1,000 treasury shares for land with an appraised value of $ 9,200. Pina’s common shares were trading for $ 7.50 per share. 

4.Issued  45,000 shares of common stock at $ 8 per share. 

5.Declared and recorded a 2:1 stock split on the outstanding common stock when the stock is selling for $ 9 per share. 

6.Declared the annual 2020 dividend on preferred stock and the $ 0.50 per share dividend on common stock. These dividends are payable in 2021. 


Prepare journal entries to record the transactions described above. Assume transactions occurred in the order presented. Prepare the December 31, 2020, stockholders’ equity section. Assume 2020 net income was $ 701,000.

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Pina Company reported the following amounts in the stockholders’ equity section of its December 31, 2019, balance sheet. Preferred stock, 13%, $ 100 par (100,000 shares authorized, 28,000 shares issued) $ 2,800,000 Common stock, $ 1 par (1,000,000 sha
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