On January 1, 2013, Powder Company provided the following shareholders' equity section of its balance sheet: Contributed

Question:

On January 1, 2013, Powder Company provided the following shareholders' 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

Total contributed capital....................................$210,400

Retained earnings..............................................185,700

Total Shareholders' Equity.................................$396,100

During 2013, the following transactions and events occurred and were properly recorded:

1. Powder issued 1,800 shares of common stock at $13 per share.

2. Powder issued 340 shares of preferred stock at $130 per share.

3. Powder earned net income of $38,950.

4. Powder paid a $7 per share dividend on the preferred stock and a $1 per share dividend on the common stock outstanding at the end of 2013.

Required:

Prepare Powder's statement of shareholders' equity (include retained earnings) for 2013.

Common Stock
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