Changes in Stockholders’ Equity On January 1, 2007 the Powder Company listed the following stockholders’ equity section of its balance sheet:
|
Contributed Capital |
|
|
Preferred stock, $100 par |
$92,800 |
|
Common stock, $5 par |
37,400 |
|
Additional paid in capital on preferred stock |
21,500 |
|
Additional paid in capital on common stock |
58,700 |
|
Total contributed capital |
$210,400 |
|
Retained Earnings |
185,700 |
|
Total Stockholders’ Equity |
$396,100 |
During 2007, the following transactions and events occurred and were properly recorded:
1. The company issued 1,800 shares of common stock at $13 per share.
2. The company issued 340 shares of preferred stock at $130 per share.
3. The company earned net income of $38,950.
4. The company paid a $7 per share dividend on the preferred stock and a $1 per share dividend on the common stock outstanding at the end of 2007.
Required
Prepare a statement of changes in stockholders’ equity of the Powder Company for 2007. (Include retained earnings.)