Chapter 11, Problem 18E

1.

Summary Introduction

Introduction: Common stockholders are the owners of the common stocks of the company. They receive dividend on their shareholding in the company. Their shareholding in the company is known as share capital of the company.

To prepare:The journal entries to record the transactions for year 2016.

2.

Summary Introduction

Introduction:The statement of retained earnings is prepared to calculate the balance of retained earnings at the end of an accounting period. It states the amount with which the retained earnings is either increased or decreased during the year.

To prepare:The statement of retained earnings for the year ended December 31, 2016.

3.

Summary Introduction

Introduction:the statement of stockholders’ equity is prepared at the end of an accounting year to show the amount of equity owned by the stockholders in the company. It depicts the changes in the value of equity from beginning value to ending value.

To prepare:The stockholder equity section of the company for the year ended December 31, 2016.