Question

Exercise 15-18 (Part Level Submission)

Cheyenne Company reported the following amounts in the stockholders’ equity section of its December 31, 2016, balance sheet.

Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued)		$200,000
Common stock, $5 par (107,000 shares authorized, 21,400 shares issued)		107,000
Additional paid-in capital		127,000
Retained earnings		491,000
Total		$925,000

During 2017, Cheyenne took part in the following transactions concerning stockholders’ equity.

1.		Paid the annual 2016 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2016.
2.		Purchased 1,800 shares of its own outstanding common stock for $41 per share. Cheyenne uses the cost method.
3.		Reissued 800 treasury shares for land valued at $33,700.
4.		Issued 520 shares of preferred stock at $105 per share.
5.		Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $44 per share.
6.		Issued the stock dividend.
7.		Declared the annual 2017 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2018.

Answer 1