Stockholders' Equity
Blake Corporation Has the Following Accounts on December

Stockholders' Equity
Blake Corporation has the following accounts on December 31, 2010
Common Stock $.25 par, 1,000,000 authorized, 400,000 issued.
Preferred stock 6%, $100 par, cumulative, 5,000 shares authorized, 3,000 issued.
Treasury stock, 1,500 shares purchased at market value of $6 per share
$$\begin{array} { | l | l | } \hline \text { Paid-in capital - Preferred } & \$ 190,000 \\\hline \text { Paid-in capital - Common } & \$ 2,400,000 \\\hline \text { Dividends Payable } & \$ 415,000 \\\hline \text { Retained Earnings } & \$ 2,335,00 0\\\hline\end{array}$$
Required:
(1) Prepare the stockholders' equity section of the balance sheet.
(2) Prepare the journal entry for the purchase of the treasury stock.
(3) Blake paid the liability for dividends on March 1. Prepare the journal entry for the payment.