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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
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Statement of Shareholders’ Equity On January 1, 2019, Osgood Film Studios reported the following alphabetical list of shareholders’ equity items:

Chapter 4, Problem 12E, Statement of Shareholders Equity On January 1, 2019, Osgood Film Studios reported the following

Dining 2019, the company sold 3,000 shares of common stock for 310 per share and of preferred stock for $125 per share. It also earned income of $99,000 and paid dividends of $8 per share on the preferred stock and $1.50 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.

To determine

Prepare statement of stockholders’ equity for Company O for 2019.

Explanation

Statement of Stockholders’ Equity:

Statement of Stockholders’ Equity is prepared to find out the changes and ending balance of contributed capital, treasury stock, retained earnings, and other comprehensive income in the business. The amount of stockholders’ equity is increased by issuance of stock and net income of the company and decreased by the payment of dividends and repurchase of treasury stock.

Prepare statement of stockholders’ equity for Company O for 2019:

Table (1)

Working note:

Calculate the amount of cash dividends on preferred stock:

Cash dividends on preferred stock = [(Outstanding preferred stockPar value +Sold nuumber of preferred stock )× Dividend per share]=[($60,000$100+500)×$

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