Changes in Shareholders\' Equity On January 1, 2016, the Osgood Film Studios rep

Question

Changes in Shareholders' Equity On January 1, 2016, the Osgood Film Studios reported the following alphabetical list of shareholders' equity items: Additional paid-in capital on common stock $183,600 Additional paid-in capital on preferred stock 15,600 Common stock, $2 par 86,400 Preferred stock, $100 par 78,000 Retained earnings 152,000 During 2016, the company sold 4,000 shares of common stock for $11 per share and 220 shares of preferred stock for $128 per share. It also earned income of $98,000 and paid dividends of $7 per share on the preferred stock and $1.00 per share on the common stock outstanding at the end of 2016. Required: Prepare Osgood's statement of shareholders' equity (include retained earnings) for 2016.

Explanation / Answer

Statement of Shareholders :-

(4000*$2) $8000

Particulars Preferred Stock $100 Par Common Stock $2 Par Addi. Paid in Capital on Pref. Stock Addi. Paid in Capital on Comm. Stock Retained Earnings Total Bal. 1 Jan $78000 $86400 $15600 $183600 $152000 $515600 Comm. Stock Issued

(4000*$2) $8000

(4000*$9) $36000 $44000 Pref. Stock Issued (220*$100) $22000 (220*$28) $6160 $28160 Net Income $98000 $98000 Cash Dividend Paid on Pref. (1000*$7) $7000 ($7000) Cash Dividend Piad on Comm. (47200*$1) $47200 ($47200) Bal. 31 Dec. $100000 $94400 $21760 $219600 $195800 $631560

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