Changes in Shareholders' EquityThe shareholders' equity section of Flores Design Company's December 31, 2018, balance sheet appeared as follows: Contributed Capital: Preferred stock, $100 par (10,000 shares authorized, 1,250 shares issued)$125,000 Additional paid-in capital on preferred stock55,000 Common stock, $10 par (60,000 shares authorized, 15,000 shares issued)150,000 Additional paid-in capital on common stock105,000 Total contributed capital$435,000Retained earnings78,000 Contributed capital and retained earnings$513,000 Less: Treasury stock (300 shares of common at $14 per share)(4,200)Total Shareholders' Equity$508,800 During 2019, the company entered into the following transactions affecting shareholders' equity:Issued 250 shares of preferred stock at $164 per share.Issued 3,000 shares of common stock at $17 per share.Reacquired 200 of its own common shares as treasury stock for $15 per share.Reissued 250 shares of treasury stock at $17 per share (FIFO basis).Net income for 2019 was $46,500. Dividends of $25,000 were distributed.Compute the return on shareholders' equity for 2019.

Shareholder equity (SE) is the phrase used to describe a company's net worth, or the entire amount…

Answered: Changes in Shareholders' Equity The…

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...

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Changes in Shareholders' Equity

The shareholders' equity section of Flores Design Company's December 31, 2018, balance sheet appeared as follows:

Contributed Capital:
Preferred stock, $100 par (10,000 shares authorized, 1,250 shares issued)	$125,000
Additional paid-in capital on preferred stock	55,000
Common stock, $10 par (60,000 shares authorized, 15,000 shares issued)	150,000
Additional paid-in capital on common stock	105,000
Total contributed capital	$435,000
Retained earnings	78,000
Contributed capital and retained earnings	$513,000
Less: Treasury stock (300 shares of common at $14 per share)	(4,200)
Total Shareholders' Equity	$508,800