On January 1, 2007 the Osborne Company reported the following alphabetical list of stockholders equity items: Additional

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On January 1, 2007 the Osborne Company reported the following alphabetical list of stockholders’ equity items:
Additional paid-in capital on common stock ......... $170,000
Additional paid-in capital on preferred stock ........ 12,000
Common stock, $2 par ................ 80,000
Preferred stock, $100 par ............... 60,000
Retained earnings ..................... 209,000
During 2007, the company sold 3,000 shares of common stock for $10 per share and 500 shares of preferred stock for $125 per share. It also earned income of $99,000 and paid dividends of $8 per share on the preferred stock and $1.50 per share on the common stock outstanding at the end of 2007.

Required
Prepare a statement of changes in stockholders’ equity of the Osborne Company for 2007. (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...
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Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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