Question

The stockholders' equity accounts of Scott Corporation at January 1 follow: Common stock, $5 par value, 350,000 shares authorized; 150,000 shares issued and outstanding $750,000 Paid-in capital in excess of par value (common stock) 600,000 Retained earnings 346,000 During the year, the following transactions occurred Jan. 5 Issued 10,000 shares of common stock for $12 cash per share 18 Purchased 4,000 shares of common stock as treasury stock at $14 cash per share Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for $17 per share July 17 Sold 500 shares of the remaining treasury stock for $13 per share. Oct. 1 Issued 5,000 shares of eight percent, $25 par value preferred stock for $35 cash per share. These are the first preferred shares issued out of 50,000 authorized shares. Dec. 31 Closed the net income of $72,500 to the Retained Earnings account.