Question

Statement of Shareholders' Equity On January 1, 2019, Powder Company provided the following shareholders' equity section of its balance sheet: Contributed Capital:

ptatement of Snarenolders' Equity on January 1, 2019, Powder Company provided the following shareholders' equity section of its balance sheet: Contributed Capital: Preferred stock, $100 par $ 92,700 37,400 21,500 Common stock, $5 par Additional paid-in capital on preferred stock Additional paid-in capital on common stock Total contributed capital Retained earnings 58,700 $210,300 185,000 Total Shareholders' Equity $395,300 During 2019, the following transactions and events occurred and were properly recorded: powder issued 1,800 shares of common stock at $15 per share. Powder issued 330 shares of preferred stock at $140 per share. 3. Powder earned net income of $38,950. 4. Powder paid a $6 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 Check My Work < Previous

Answer 1

Balances 1/1/19 Common Stock Issued Preferred Stock Issued Net Income Cash Dividend paid on preferred Cash Dividend paid on common Balances, 12/31/19 POWDER COMPANY Statement of Shareholder's Equity For Year Ended December 31, 2019 Additional Paid Additional Paid Preferred Stock Common Stock in Capital on in Capital on $100 par $5 Par preferred stock common stock $ 92,700$ 37,400 $ 21,500 $ 58,700 $ $ 9,000 $ 18,000 $ 33,000 $ 12,000 $ $ $ $ 125,700 $ 46,400 $ 33,500 $ 76,700 $ retained Earnings 185,000 $ $ $ 38,950 $ (7,542) $ (9,280) $ 207,128 $ Total 395,300 27,000 45,000 38,950 (7,542) (9,280) 489,428 1800*5 1800*10 330*100 300*40 Working Common Stock Issued Preferred Stock Issued Net Income Cash Dividend paid on preferred Cash Dividend paid on common 38950 (927+330) *6 (7480+1800)*1 37400/5 = 7480 Note: Please Comment down for any further clarifications.