Stockholders’ equity : The claims of owners on a company’s resources, after the liabilities are paid off, are referred to as stockholders’ equity. Therefore, stockholders’ equity is sometimes referred to as net worth of owners. Stockholders’ Equity statement: Stockholders’ equity statement shows the changes made in the stockholders’ equity account and in the total stockholders’ equity during the accounting period. To prepare: A stockholders’ equity statement of Incorporation I, for the year ending December 31, 2016.

Question

The comparative statements of shareholders' equity for Company A are shown below. They follow the fiscal years ending December 31, 2019, 2020, and 2021.Using the statements as the guide, compute earnings per share (EPS) as they would have appeared on the income statements for:December 31, 2019December 31, 2020December 31, 2021No potential common shares were outstanding during any of the periods shown above. COMPANY A Statements of Shareholders' Equity For the Years Ended December 31, 2019, 2020, and 2021 ($ in millions) Total Preferred Common Additional Share- Stock, $10 Stock, $1 Paid-in Retained holders' par par Capital Earnings Equity Balance at Jan. 1, 2019 55 495 1,878 2,428 Sale of preferred shares 10 470 480 Sale of common shares, 7/1 9 81 90…

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Chapter 11, Problem 11.19EX

To determine

Stockholders’ equity:

The claims of owners on a company’s resources, after the liabilities are paid off, are referred to as stockholders’ equity. Therefore, stockholders’ equity is sometimes referred to as net worth of owners.

Stockholders’ Equity statement:

Stockholders’ equity statement shows the changes made in the stockholders’ equity account and in the total stockholders’ equity during the accounting period.

To prepare: A stockholders’ equity statement of Incorporation I, for the year ending December 31, 2016.

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The comparative statements of shareholders' equity for Company A are shown below. They follow the fiscal years ending December 31, 2019, 2020, and 2021.Using the statements as the guide, compute earnings per share (EPS) as they would have appeared on the income statements for:December 31, 2019December 31, 2020December 31, 2021No potential common shares were outstanding during any of the periods shown above. COMPANY A Statements of Shareholders' Equity For the Years Ended December 31, 2019, 2020, and 2021 ($ in millions) Total Preferred Common Additional Share- Stock, $10 Stock, $1 Paid-in Retained holders' par par Capital Earnings Equity Balance at Jan. 1, 2019 55 495 1,878 2,428 Sale of preferred shares 10 470 480 Sale of common shares, 7/1 9 81 90…

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