Question

Problem 11-2A (Part Level Submission)

The stockholders’ equity accounts of Ayayai Corp. on January 1, 2017, were as follows.

Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized)		$300,000
Common Stock ($4 stated value, 300,000 shares authorized)		1,000,000
Paid-in Capital in Excess of Par Value—Preferred Stock		15,000
Paid-in Capital in Excess of Stated Value—Common Stock		480,000
Retained Earnings		691,500
Treasury Stock (5,000 common shares)		40,000

During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity.

Feb.	1		Issued 5,000 shares of common stock for $35,000.
Mar.	20		Purchased 1,000 additional shares of common treasury stock at $8 per share.
Oct.	1		Declared a 7% cash dividend on preferred stock, payable November 1.
Nov.	1		Paid the dividend declared on October 1.
Dec.	1		Declared a $0.55 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017.
Dec.	31		Determined that net income for the year was $278,300. Paid the dividend declared on December 1.