Answer:
POWDER COMPANY Statement of Shareholders' Equity For Year Ended December 31, 2019:
Preferred Stock $100 par $126,800
Common Stock $5 par $46,400
Additional Paid-in Capital on Preferred Stock $31,700
Additional Paid-in Capital on Common Stock $73,100
Retained Earnings $206,494
Total Shareholders' Equity $484,494
(See calculations below:)
Explanation:
a) Statement of Shareholders' Equity: This is a financial statement under the balance sheet which a company issues to show the changes within the equity section of the balance sheet over a designated period of time.
b) Preferred Stock $100 par $92,800
New Issue, 340 $34,000
Total $126,800
c) Common stock, $5 par = $37,400
New Issue, 1,800 shares = $9,000
Total $46,400
d) Additional paid-in capital on preferred stock 21,500
From new issue of 340 by $30 per share 10,200
Total $31,700
e) Additional paid-in capital on common stock $58,700
From New Issue 1,800 by $8 per share $14,400
Total $73,100
f) Retained earnings = $185,700
Net Income for the year $38,950
Less Dividends: Preferred -$8,876 ($7 x 1,268 shares)
Less Dividends: Common -$9,280 ($1 x 9,280 shares)
Retained Earnings balance $206,494
