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Morgan Company Reported the Following Balances at December 31, 2017

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Essay

Morgan Company reported the following balances at December 31, 2017: common stock $500,000; paid-in capital in excess of par value $100,000; retained earnings $350,000. During 2018, the following transactions affected stockholders' equity.
1. Issued preferred stock with a par value of $150,000 for $200,000.
2. Purchased treasury stock (common) for $50,000.
3. Earned net income of $140,000.
4. Declared and paid cash dividends of $75,000.
Instructions
Prepare the stockholders' equity section of Morgan Company's December 31, 2018, balance sheet.


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