Reference no: EM132915359

Transactions of Mazda Company during 200A, the first year of operations, that affected its stockholders' equity were as follows:

a. Sold 40,000 shares of 6% preferred stock, P100 par at P150

b. Sold 60,000 shares of commons stock, P75 par at P90.

c. Purchased and retired 20,000 shares of preferred stock at P130.

d. Purchased 10,000 shares of its common stock at P80 to be held as treasury

e. Sold 8,000 shares of treasury stock at P95.

f. Stockholders donated to the company 5,000 shares of common when shares had a market price of P95. Sixty percent of the shares were subsequently sold for P100.

g. Net income for 200B was P6,000,000.

h. Appropriated retained earnings equal to the remaining cost of treasury stock.

Required:

Problem 1. Record each of the above transactions,

Problem 2. Prepare the stockholders' equity section of the balance sheet.