The following balances appear in the accounts of Iron Corporation as of December 31, 2003:
|
Retained earnings, January 1, 2003 |
$128,000 |
|
Prior period adjustment (tax adjustment for 2001). |
(57,000) |
|
Net income for 2003 |
60,000 |
|
Preferred stock (7%, $12 par, 20,000 shares authorized, |
|
|
5,000 shares issued and outstanding) |
60,000 |
|
Common stock ($5 par, 100,000 shares authorized, |
|
|
16,000 shares issued, 200 held as treasury stock) |
80,000 |
|
Paid in capital in excess of par, preferred stock. |
13,400 |
|
Paid in capital in excess of par, common stock |
42,800 |
|
Treasury stock |
3,600 |
|
Cash dividends (declared during 2003) |
10,000 |
Required
1. Prepare the statement of retained earnings for Iron Corporation as of December 31, 2003.
2. Prepare the stockholders equity section of Iron Corporation s balance sheet as of December 31, 2003.