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The Stockholder’s Equity accounts of a corporation on January 1, 2009, were as follows:

Preferred Stock (10%, $130 par, cumulative, 2,000 shares authorized) $ 195,000 Common Stock ($5 par, 120,000 shares authorized) 400,000 APIC – Preferred 20,000 APIC – Common 600,000 Retained Earnings 800,000 Treasury Stock- Common ($15 cost) 18,000 During 2009, the corporation had the following transactions and events relating to its stockholders equity. Please update the shareholder’s equity accounts based on the information below and answer the following 5 questions. Jan. 6 Issued 10,000 shares of common stock. On this date, the stock was trading for $13 per share. Mar. 21 Sold 1,000 shares of treasury stock – common for $18 per share. Dec. 12 Purchased 3,000 shares of common stock for the treasury at a cost of $45,000. Dec. 31 Determined that net income for the year was $218,000. Dividends were declared and paid during December. These dividends included a $0.10 per share dividend to common 1. What is the average selling price of the preferred stock? A. $ 97.50 B. $111.66 C. $130.00 D. $107.50 E. $143.33 2. What is the total amount of dividends paid during December? A. $28,500 B. $35,000 C. $28,180 D. $27,500 E. $27,380 3. What is the Total Contributed Capital as of December 31, 2009? A. $ 1,358,000 B. $ 1,348,000 C. $ 1,345,000 D. $1,318,000 E. $1,268,000 4. What is the Retained Earnings balance as of December 31, 2009? A. $989,820 B. $989,500 C. $983,000 D. $990,620 E. $990,500 5. What is total stockholder’s equity as of December 31, 2009? A. $2,337,820 B. $2,347,820 C. $2,289,820 D. $2,195,500 E. $2,287,50

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