Capilal lUCK 600,000 (Issued 10,000 shares of $30 par value preferred stock at $60 per share) enoltouttent rollo ads n toognolok 15 Capital Stock S elder 15,000 Cash 15,000 (Purchased 1,000 shares of common stock for the treasury at $15 per share) 31 Cash 8,500 Capital Stock 5,000 Gain on Sale of Stock 3,500 (Sold 500 shares of treasury stock at $17 per share) Instructions On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions. E15-9 (LO1,3) (Preferred Stock Entries and Dividends) Otis Thorpe Corporation has 10,000 shares of $100 par value, 8%, preferred stock and 50,000 shares of $10 par value common stock outstanding at December 31, 2017. Instructions Answer the questions in each of the following independent situations. If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2014, what are (a) the dividends in arrears that should be reported on the December 31, 2017, balance sheet? How should these dividends be reported? 1 1 II 1 1 I 814 Chapter 15 Stockholders' Equity (b) If the preferred stock is convertible into seven shares of $10 par value common stock and 4,000 shares are converted, what entry is required for the conversion assuming the preferred stock was issued at par value? (c) If the preferred stock was issued at $107 per share, how should the preferred stock be reported in the stockholders equity section? E15-10 (LO2,4) (Analysis of Equity Data and Equity Section Preparation) For a recent 2-year period, the balance sheet of Santana Dotson Company showed the following stockholders' equity data at December 31 (in millions) 2017 2016 1 Additional paid-in capital borts $ 931 mo$ 817 540 omur UD Common stock 545 io abit DTPOH sdt 22 7,167 1,564 23 5,226 Retained earnings Treasury stock 918 Total stockholders' equity $7,079 $5,665 Common stock shares issued 218 216 Common stock shares authorized 500 O500 6loss3 34 27 Treasury stock shares noitoun Instructions (a) Answer the following questions. (1) What is the par value of the common stock? (2) What is the cost per share of treasury stock at December 31, 2017, and at December 31, 2016? (b) Prepare the stockholders' equity section at December 31, 2017. are selected transactions that may affect stockholders E15-11 (LO3,4) (Equity Items on the Balance Sheet) The following