on october l 2006 marble company had 400 000 shares of 2 par common stock issued and 541419

P8-5A. Prepare equity section of balance sheet. (LO 1, 2, 5)

On October l,2006,Marble Company had 400,000 shares of $2 par common stock issued and outstanding. The shareholders equity accounts at October 1, 2006, had the following balances

The following transactions occurred during the fiscal year ended September 30, 2007.

1. On October 30, issued 30,000 shares of 970, $100 par, cumulative preferred stock at $102.

2. On November 30, reacquired 8,000 shares of common stock for $8.50 per share.

3. On December 1, declared a cash dividend of $0.45 per share on the common stock outstanding, payable on December 31,2006, to shareholders of record on November 15.

4. Paid dividends to preferred shareholders on December 31, 2006.

5. Net income for the year ended September 30, 2001, was $3,875,000.

Required

Prepare the shareholders equity section of Marble’s balance sheet at September 30,2001.