E4-11 Changes in Stockholdersâ EquityOn January 1, 2016 the Powder Company listed the followingstockholdersâ equity section of its balance sheet:
Contributed Capital
Preferred stock, $100 par $92800
Common stock, $5 par $37400
Additional paid-in capital on preferred stock $21500
Additional paid-in capital on common stock $58700
Total contributed capital $210400
Retained Earnings $185700
Total Stockholdersâ Equity $396100
During 2016, the following transactions and events occurred andwere properly recorded:
The company issued 1,800 shares of common stock at $13 pershare.
The company issued 340 shares of preferred stock at $130 pershare.
The company earned net income of $38,950.
The company paid a $7 per share dividend on the preferred stockand a $1 per share dividend on the common stock out- standing atthe end of 2016.
Required
Prepare a statement of changes in stockholdersâ equity of thePowder Company for 2016. (Include retained earnings.)
E4-11 Changes in Stockholdersâ EquityOn January 1, 2016 the Powder Company listed the followingstockholdersâ equity section of its balance sheet:
Contributed Capital
Preferred stock, $100 par $92800
Common stock, $5 par $37400
Additional paid-in capital on preferred stock $21500
Additional paid-in capital on common stock $58700
Total contributed capital $210400
Retained Earnings $185700
Total Stockholdersâ Equity $396100
During 2016, the following transactions and events occurred andwere properly recorded:
The company issued 1,800 shares of common stock at $13 pershare.
The company issued 340 shares of preferred stock at $130 pershare.
The company earned net income of $38,950.
The company paid a $7 per share dividend on the preferred stockand a $1 per share dividend on the common stock out- standing atthe end of 2016.
Required
Prepare a statement of changes in stockholdersâ equity of thePowder Company for 2016. (Include retained earnings.)
Related questions
Problem 15-3
Hatch Company has two classes of capital stock outstanding: 7%,$20 par preferred and $5 par common. At December 31, 2014, thefollowing accounts were iHatch Company has two classes of capitalstock outstanding: 7%, $20 par preferred and $5 par common. AtDecember 31, 2014, the following accounts were included instockholdersâ equity.
| Preferred Stock, 151,800 shares | $ 3,036,000 | |
| Common Stock, 2,120,000 shares | 10,600,000 | |
| Paid-in Capital in Excess of ParâPreferred Stock | 203,700 | |
| Paid-in Capital in Excess of ParâCommon Stock | 27,240,000 | |
| Retained Earnings | 4,547,000 |
The following transactions affected stockholdersâ equity during2015.
| Jan. 1 | 40,300 shares of preferred stock issued at $22 per share. | |
| Feb. 1 | 53,500 shares of common stock issued at $21 per share. | |
| June 1 | 2-for-1 stock split (par value reduced to $2.50). | |
| July 1 | 39,700 shares of common treasury stock purchased at $9 pershare. Hatch uses the cost method. | |
| Sept. 15 | 10,600 shares of treasury stock reissued at $11 per share. | |
| Dec. 31 | The preferred dividend is declared, and a common dividend of55¢ per share is declared. | |
| Dec. 31 | Net income is $2,279,000. |
Prepare the stockholdersâ equity section for Hatch Company atDecember 31, 2015.
On December 31, 2016, Cullumber Company had 1,275,000 shares of $5 par common stock issued and outstanding. At December 31, 2016, stockholdersâ equity had the amounts listed here.
| Common Stock | $6,375,000 | |
| Additional Paid-in Capital | 1,725,000 | |
| Retained Earnings | 1,130,000 |
Transactions during 2017 and other information related to stockholdersâ equity accounts were as follows.
| 1. | On January 10, 2017, issued at $114 per share 128,000 shares of $102 par value, 8% cumulative preferred stock. | |
| 2. | On February 8, 2017, reacquired 13,700 shares of its common stock for $14 per share. | |
| 3. | On May 9, 2017, declared the yearly cash dividend on preferred stock, payable June 10, 2017, to stockholders of record on May 31, 2017. | |
| 4. | On June 8, 2017, declared a cash dividend of $1.25 per share on the common stock outstanding, payable on July 10, 2017, to stockholders of record on July 1, 2017. | |
| 5. | Net income for the year was $3,683,000. |
Prepare the stockholdersâ equity section of Cullumber balance sheet at December 31, 2017.
