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 Tota...

POWDER COMPANY Statement of Changes in Stockholders Equity For ...

On January 1, 2007 the Powder Company listed the following stockholders equity section of its balance sheet:

Question:

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
, $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 on the preferred stock and a $1 per share 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.)

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