Hi,

Can I ask you 1 question, please? How do you calculate to have NET INCOME = 2638 ????

I tried and I do not know how to have this number = 2638 on the BIG TABLE below.

Please explain for me. Thank you so much.

Statement of Shareholders' Equity

You may use the attached spreadsheet to help you complete this activity, but you are not required to do so. You will find the spreadsheet by clicking on the green Excel icon in the upper left hand corner of the activity.

On January 1, 2016, 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 2016, the following transactions and events occurred and were properly recorded:

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

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

Powder earned net income of $ 38,950.

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 2016.

Required:

Prepare Powder's statement of shareholders' equity (include retained earnings) for 2016.