On January 1, 2019, Osgood Film Studios reported the following alphabetical list of shareholders equity items: Additional
Question:
On January 1, 2019, Osgood Film Studios reported the following alphabetical list of shareholders’ 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 2019, 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 2019.
Required:
Prepare Osgood’s statement of shareholders’ equity (include retained earnings) for 2019.
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...
Step by Step Answer:
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach