Albion Company Reported the Following Amounts on Its Balance Sheet

Essay

Albion Company reported the following amounts on its balance sheet at January 1, 2015:
The following transactions occurred during 2015:
1. Declared a 20% stock dividend on preferred stock on May 21, when the stock was selling at
$15 per share. The stock dividend will be distributed on June 30, 2015.
2. Distributed the preferred stock dividend on June 30.
Show the effects of the transactions on the accounting equation and prepare the stockholders' equity section of Albion's balance sheet at December 31, 2015.