Statement of Shareholders' Equity On January 1, 2019, Powder Company provided the following shareholders' equity section of its balance sheet: Contributed Capital: Preferred stock, $100 par $ 92,800 Common stock, $5 par 37,500 Additional paid-in capital on preferred stock 21,500 Additional paid-in capital on common stock 58,700 Total contributed capital $210,500 Retained earnings 185,000 Total Shareholders' Equity $395,500 During 2019, the following transactions and events occurred and were properly recorded: 1. Powder issued 1,800 shares of common stock at $13 per share. 2. Powder issued 330 shares of preferred stock at $120 per share. 3. Powder earned net income of $38,950. 4. Powder paid a $8 per share dividend on the preferred stock and a $1 per share dividend on the common stock outstanding at the end of 2019. Required: Prepare Powder's statement of shareholders' equity (include retained earnings) for 2019. POWDER COMPANY Statement of Shareholders' Equity For Year Ended December 31, 2019 Additional Additional Preferred Stock Common Paid-in Capital on Preferred Stock Paid-in Stock Retained $5 par Capital on Common Stock $100 par Earnings Total Balances, 1/1/19 92,800 37,500 18,000 x 58,700V 185,000 v 21,500 395,500 Common stock issued 5,400 X 67,600 x Preferred stock issued 33,000 V 10,200 x 67,600 X Net income Cash dividend paid on preferred 38,950V 38,950 V 8,876 X 8,876 X Cash dividend paid on common 9,280 X 9,280 x Balances, 12/31/19 125,800 55,400 X 31,700 X 64,100 X 206,494 X 484,494 X
Statement of Shareholders' Equity On January 1, 2019, Powder Company provided the following shareholders' equity section of its balance sheet: Contributed Capital: Preferred stock, $100 par $ 92,800 Common stock, $5 par 37,500 Additional paid-in capital on preferred stock 21,500 Additional paid-in capital on common stock 58,700 Total contributed capital $210,500 Retained earnings 185,000 Total Shareholders' Equity $395,500 During 2019, the following transactions and events occurred and were properly recorded: 1. Powder issued 1,800 shares of common stock at $13 per share. 2. Powder issued 330 shares of preferred stock at $120 per share. 3. Powder earned net income of $38,950. 4. Powder paid a $8 per share dividend on the preferred stock and a $1 per share dividend on the common stock outstanding at the end of 2019. Required: Prepare Powder's statement of shareholders' equity (include retained earnings) for 2019. POWDER COMPANY Statement of Shareholders' Equity For Year Ended December 31, 2019 Additional Additional Preferred Stock Common Paid-in Capital on Preferred Stock Paid-in Stock Retained $5 par Capital on Common Stock $100 par Earnings Total Balances, 1/1/19 92,800 37,500 18,000 x 58,700V 185,000 v 21,500 395,500 Common stock issued 5,400 X 67,600 x Preferred stock issued 33,000 V 10,200 x 67,600 X Net income Cash dividend paid on preferred 38,950V 38,950 V 8,876 X 8,876 X Cash dividend paid on common 9,280 X 9,280 x Balances, 12/31/19 125,800 55,400 X 31,700 X 64,100 X 206,494 X 484,494 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Statement of Shareholders' Equity
On January 1, 2019, Powder Company provided the following shareholders' equity section of its balance sheet:
Contributed Capital:
Preferred stock, $100 par
$ 92,800
Common stock, $5 par
37,500
Additional paid-in capital on preferred stock
21,500
Additional paid-in capital on common stock
58,700
Total contributed capital
$210,500
Retained earnings
185,000
Total Shareholders' Equity
$395,500
During 2019, the following transactions and events occurred and were properly recorded:
1. Powder issued 1,800 shares of common stock at $13 per share.
2. Powder issued 330 shares of preferred stock at $120 per share.
3. Powder earned net income of $38,950.
4. Powder paid a $8 per share dividend on the preferred stock and a $1 per share dividend on the common stock outstanding at the end of 2019.
Required:
Prepare Powder's statement of shareholders' equity (include retained earnings) for 2019.
POWDER COMPANY
Statement of Shareholders' Equity
For Year Ended December 31, 2019
Additional
Additional
Preferred
Common
Paid-in Capital on Preferred
Paid-in
Stock
Stock
Retained
Stock
Capital on
$100 par
$5 par
Earnings
Total
Common Stock
Balances, 1/1/19
92,800 V
$ 37,500
21,500
V
58,700 V
185,000 V
395,500
Common stock issued
Preferred stock issued
18,000 x
5,400 X
67,600 X
10,200 x
67,600 X
33,000
Net income
38,950
38,950
Cash dividend paid on preferred
8,876 X
8,876 X
Cash dividend paid on common
9,280
9,280 X
Balances, 12/31/19
125,800
55,400 x
31,700 X
64,100 x $ 206,494 x
484,494 X
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education