Question

# Statement of Shareholders' Equity On January 1, 2019, Osgood Film Studios reported the following alphabetical list...

Statement of Shareholders' Equity

On January 1, 2019, Osgood Film Studios reported the following alphabetical list of shareholders' equity items:

 Additional paid-in capital on common stock \$171,700 Additional paid-in capital on preferred stock 17,800 Common stock, \$2 par 80,800 Preferred stock, \$100 par 89,000 Retained earnings 200,000

During 2019, the company sold 3,200 shares of common stock for \$10 per share and 250 shares of preferred stock for \$123 per share. It also earned income of \$96,000 and paid dividends of \$8 per share on the preferred stock and \$1.20 per share on the common stock outstanding at the end of 2019.

Required:

Prepare Osgood's statement of shareholders' equity (include retained earnings) for 2019.

Common stock = 80800 + 3200 *2 = 87200

Additional paid in capital common stock = 171700 + 3200 * (10 -2) = 197300

Preferred stock = 89000 + 250 * 100 = 114000

Additional paid in capital preferred stock = 17800 + 250 * (123-100) = 23550

Retained earnings = Opening balance + Net Income - Preferred dividend - common stock dividend

Preferred dividend = 8 * (114000 / 100) = 9120

Common stock dividend = 1.20 * (87200 /2) = 52320

Retained earning ending balance = 200000 + 96000 - 9120 - 52320 = 234560

 Statement of stockholder equity Common stock \$2 par 87200.00 Additional paid in capital common stock 197300.00 Preferred stock \$100 par 114000.00 Additional paid in capital preferred stock 23550.00 Retained earnings 234560.00 Stockholders equity 656610.00

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