Pasquali Corporation was incorporated on January 1, 20X4. The following equity-related transactions occurred during 20X4. Evaluate these activities and prepare a statement of stockholders' equity for the year ending December 31, 20X4.
Issued 4,000,000 shares of $1 par value common stock at $3 per share.
Declared and issued a 5% stock dividend (200,000 shares) at a time when the market value of the stock was $6 per share.
Reacquired 15,000 treasury shares at $5 per share.
Declared and paid cash dividends of $100,000.
Reported net income for the full year of $1,500,000.