The stockholders equity section of Summer Corporation s balance sheet shows the following as of the end of 2003:
|
Preferred stock (5%, $30 par, 10,000 shares authorized, |
|
|
5,000 shares issued and outstanding) |
$ ? |
|
Common stock ($12 par, 50,000 shares authorized, |
|
|
28,000 issued, 27,500 outstanding) |
336,000 |
|
Paid in capital in excess of par, preferred stock |
? |
|
Paid in capital in excess of par, common stock |
424,000 |
|
Retained earnings |
78,000 |
|
Treasury stock (purchased at $14) |
? |
|
Total stockholders equity |
$ ? |
Prepare a statement of retained earnings for the year ended December 31, 2003. Assume the following additional facts:
a. Retained earnings as of December 31, 2002, was $25,500.
b. Net income as of 2003 was $72,000.
c. Dividends equal to the current dividend preference on preferred stock were declared and issued.
d. A prior period adjustment was made to retained earnings to correct an overstatement of 2002 net income in the amount of $12,000.
e. Common stock was sold for $12.