Analysis Case $18-2($Static$)$ Statement of shareholders$$ equity; financial statement effects $[$LO$18-1,18-3,18-6,18-7]$

The shareholders' equity portion of the balance sheet of Sessel's Department Stores, Incorporated, a large regional specialty retailer, is as follows: $($SEE IMAGE$)$

Disclosures elsewhere in Sessel's annual report revealed the following changes in shareholders' equity accounts for $2025,2024,2023($values and shares in whole dollars$)$:

$2025$:

The only changes in retained earnings during $2025$ were preferred dividends on preferred stock of $$3,388,000$ and net income.

The preferred stock is convertible. During the year, $6,592$ shares $($Series B$)$ were issued. All shares were converted into $320,000$ shares of common stock. No gain or loss was recorded on the conversion.

Common shares were issued in a public offering and upon the exercise of stock options. On the statement of shareholders' equity, Sessel's reports these two items on a single line entitled: $$Issuance of shares.$$

$2024$:

Net income: $$12,126,000.$

Issuance of common stock: $5,580,000$ shares at $$112,706,000.$

$2023$:

Net income: $$13,494,000.$

Issuance of common stock: $120,000$ shares at $$826,000.$

Required:

From these disclosures, prepare comparative statements of shareholders' equity accounts for $2025,2024,2023($values and shares in whole dollars$)$:

Note: Negative amounts should be indicated by a minus sign. Enter your answers in thousands $(000\text{'}$s$).$

$2025$:

$1.$ The only changes in retained earnings during $2025$ were preferred dividends on preferred stock of $\backslash (\backslash$$ $3,388,000\backslash )$ and net income.

$2.$ The preferred stock is convertible. During the year, $6,592$ shares $($Series B$)$ were issued. All shares were converted into $320,000$ shares of common stock. No gain or loss was recorded on the conversion.

$3.$ Common shares were issued in a public offering and upon the exercise of stock options. On the statement of shareholders' equity, Sessel's reports these two items on a single line entitled: "Issuance of shares."

$2024$:

$1.$ Net income: $\backslash (\backslash$$ $12,126,000\backslash ).$

$2.$ Issuance of common stock: $5,580,000$ shares at $\backslash (\backslash$$ $112,706,000\backslash ).$

$2023$:

$1.$ Net income: $\backslash (\backslash$$ $13,494,000\backslash ).$

$2.$ Issuance of common stock: $120,000$ shares at $\backslash (\backslash$$ $826,000\backslash ).$

Required:

From these disclosures, prepare comparative statements of shareholders' equity accounts for $2025,2024,2023($values and shares in whole dollars$)$:

Note: Negative amounts should be indicated by a minus sign. Enter your answers in thousands $(000\text{'}$s$).$ Check my work

Statement of Shareholders' Equity

For the Years Ended December $31,2025,2024,$ and $2023(\backslash$$ in thousands$)$

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