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 $158,950 Additional paid-in capital on preferred stock 19,400 Common stock, $2 par 74,800 Preferred stock, $100 par 97,000 Retained earnings 238,000
During 2016, the company sold 2,700 shares of common stock for $14 per share and 250 shares of preferred stock for $129 per share. It also earned income of $81,000 and paid dividends of $10 per share on the preferred stock and $2.90 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.
$100 parCommon Stock $2 parAdditional
on Preferred StockAdditional
on Common StockRetained
TotalBalances, 1/1/16 $$$$$$Common stock issued Preferred stock issued Net income Cash dividend paid on preferred Cash dividend paid on common Balances, 12/31/16 $$$$$$
**Stockholders equity = preferred stock +common stock +Paid in capital-preferred +paid in capital -common +retained earning
**Preferred shares outstanding on date of dividend = 970beginning+250= 1220 [97000/100]
**common shares outstanding on date of dividend = 37400 beginning +2700= 40100 [74800/2]
|Common stock issued||37800 [ 2700*14]|
|Preferred stock issued||32250 [250*129]|
|cash dividend paid on preferred||(12200)|
|Cash dividend paid on common Balances||(116290) [40100*2.9]|
|stockholders equity 12/31/16||610710|
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