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	$179,775
Additional paid-in capital on preferred stock	20,000
Common stock, $2 par	84,600
Preferred stock, $100 par	100,000
Retained earnings	202,000

During 2016, the company sold 3,100 shares of common stock for $13 per share and 430 shares of preferred stock for $137 per share. It also earned income of $82,000 and paid dividends of $7 per share on the preferred stock and $2.50 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.

OSGOOD FILM STUDIOS
Statement of Shareholders' Equity
For Year Ended December 31, 2016
	Preferred Stock $100 par	Common Stock $2 par	Additional Paid-in Capital on Preferred Stock	Additional Paid-in Capital on Common Stock	Retained Earnings	Total
	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4	$fill in the blank 5	$fill in the blank 6	$fill in the blank 7
		fill in the blank 9		fill in the blank 10		fill in the blank 11
	fill in the blank 13		fill in the blank 14			fill in the blank 15
					fill in the blank 17	fill in the blank 18
					fill in the blank 20	fill in the blank 21
					fill in the blank 23	fill in the blank 24
	$fill in the blank 26	$fill in the blank 27	$fill in the blank 28	$fill in the blank 29	$fill in the blank 30	$fill in the blank 31

Answer 1

OSGOOD FILM STUDIOS
Statement of Shareholders' Equity
For Year Ended December 31, 2016
	Preferred Stock $100 par	Common Stock $2 par	Additional Paid-in Capital on Preferred Stock	Additional Paid-in Capital on Common Stock	Retained Earnings	Total
							january 1, 2016	$              100,000	$              84,600	$                  20,000	$                179,775	$ 202,000	$ 586,375
							Issue of 3,100 common shares		3,100*$2 = 6,200		3,100*$11 = $34,100		$    40,300
Issue of 430 Preferred shares	430*$100 = 43,000		430*$37 = $15,910			$    58,910
Net income for the year					$   82,000	$    82,000
Dividends paid Preferred stock ((1,000+430)*$7)					$ (10,010)	$   (10,010)
Dividends paid to common stock ((42,300+3,100)*$2.50)					$ (113,500)	$ (113,500)
Total	$              143,000	$              90,800	$                  35,910	$                213,875	$ 160,490	$ 644,075

You can reach me over comment box, if you have any doubts. Please rate this answer