Hi,

I only have 1 question about this problem. How do you calculate or exactly how do you know 9280 (common stock) x $1and how do you know 1268 ( preferred stock) x $7. Can you show me how do calculate to have 9280 and 1268 ???? Thank you!

Cash dividend to preferred share 1268 x $7

Cash dividend to common stock 9280 x $1

I DO NOT HOW TO CALCULATE TO HAVE 1268 AND 9280 ?????

Question: On January 1, 2016, Powder Company provided the following shareholders' equity section of its bal...

Show transcribed image text

Expert Answer

Anonymous answered this

Was this answer helpful?

2

0

109 answers

Solution.

Preparetion of share sholder equity section.

Particulars	Current	Change	Closing
Capital Stock:
Preferred Stock $100 par	92,800.00	34,000.00	126,800.00
Common Stock $5 par	37,400.00	9,000.00	46,400.00
Total Capital Stock	130,200.00	43,000.00	173,200.00
Additional Paid in Capital:
Paid in Capital in Excess of Par Preferred Stock	21,500.00	10,200.00	31,700.00
Paid in Capital in Excess of Par Common Stock	58,700.00	14,400.00	73,100.00
Paid in Capital from Treasurey Stock			-
Total Paid in Capital	80,200.00	24,600.00	104,800.00
Retained Earnings	185,700.00	20,794.00	206,494.00
Total Paid in Captal and Retained Earnings	265,900.00	45,394.00	311,294.00
Less Treasurey Stock			-
Total Stockholders Equity	265,900.00	45,394.00	311,294.00

ii.

Retained Earnings opening	185,700
Net income	38,950
Cash Dividend to preffered share (1,268 x $7 )	(8,876)
Cash Dividend to Common stock (9,280 x $1 )	(9,280)
Retained earnings closing	206,494

ded the following shareholder Statement of Shareholders' Equity On January 1, 2016, Powder Company provi equity section of its balance sheet: Contributed Capital: Preferred stock, $100 par $ 92,800 37,400 21,500 58,700 210,400 185,700 396,100 Common stock, $5 par Additional paid-in capital on preferred stock Additional paid-in capital on common stock Total contributed capitdal Retained earnings Total Shareholders' Equity During 2016, 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 S1 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