On January 1, 2010, the Powder Company listed the following stockholders equity section of its balance sheet Contributed Capital Preferred stock, $100 par $ 92,800 Common stock , $5 par 37,400 Additional paid in capital on preferred stock 21,500 Additional paid in capital on common stock 58,700 Tot...

POWDER COMPANY Statement of Changes in Stockholders Equity For Year Ended December 31 ...

On January 1, 2010, the Powder Company listed the following stockholders equity section of its balance sheet:

Question:

On January 1, 2010, the Powder Company listed the following stockholders’ equity section of its balance sheet:
Contributed Capital
Preferred stock, $100 par .............. $ 92,800
, $5 par ............... 37,400
Additional paid-in capital on preferred stock ....... 21,500
Additional paid-in capital on common stock ..... 58,700
Total contributed capital ............... $210,400
Retained Earnings ................ 185,700
Total Stockholders’ Equity ............ $396,100
During 2010, the following transactions and events occurred and were properly recorded:
1. The company issued 1,800 shares of common stock at $13 per share.
2. The company issued 340 shares of preferred stock at $130 per share.
3. The company earned net income of $38,950.
4. The company paid a $7 per share on the preferred stock and a $1 per share on the common stock outstanding at the end of 2010.

Required
Prepare a statement of changes in stockholders’ equity of the Powder Company for 2010. (Include retained earnings.)

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...