Dana Company reported the following amounts in the shareholders equity
Dana Company reported the following amounts in the shareholders’ equity' section of its December 31, 2015, balance sheet:
Preferred stock, 9%, $100 par (10,000 shares authorized, 1,000 shares issued) .. $100,000
Common stock, $ 10 par (20,000 shares authorized, 9,000 shares issued) .... 90,000
Additional paid-in capital on preferred stock ............... 20,000
Additional paid-in capital on common stock .............. 99,000
Retained earnings ........................ 330,000
During 2016, Dana’s net income was $83,000 and its dividends on preferred and common stock were $9,900 and $17,600, respectively. In addition, the following transactions affected its shareholders’ equity':
1. Purchased 750 shares of its outstanding common stock as treasury' stock for $22 per share.
2. Sold 500 shares of treasury' stock at $27 per share. The company uses the cost method to account for treasury' stock.
3. Retired 200 of the common shares held in the treasury'.
4. Issued 100 shares of preferred stock for $125 per share.
5. The aggregate market value of the company’s long-term investments in available-for-sale equity' securities dropped below' the carrying value of these securities at year end. The difference between the earning value and the year-end market value totals $10,000 (net of taxes).
1. Prepare Dana’s statement of shareholders’ equity' for 2016. (Hint: This statement will include more than 10 numerical columns.) Assume Dana reports its comprehensive income in this statement.
2. Comprehensive The shareholders’ equity' section of Gaines Industries’ balance sheet appeared as follows’ at Prepare the shareholders’ equity' section of Dana's balance sheet as of December 31, 2016. Include any related notes to its financial statements.
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