Payment of Dividends Prepare a formal statement of changes in stockholders’ equity for 2000 showing the changes in each of the individual equity accounts.

. Give possible reasons as to why Ortegren might change its equity financing by eliminating preferred stock and issuing more common.

Allstar Corporation reported the following stockholders’ equity balances at December 31:

. What effect do treasury shares have on the amount of dividends paid? If Allstar were to pay a dividend of $2 per share, what would be the total amount of the dividend payment?
. What would be the balance in each of the stockholders’
equity accounts following the payment of the dividend?
. How does Allstar’s payment of dividends affect the balances in additional paid-in capital and retained earnings?

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Common stock ($10 par: 50,000 shares authorized: 30,000 shares issued: 24.000 shares outstanding) Additional paid-in capital Retained earnings Total Less: Treasury stock (6,000 shares, at cost) Total stockholders' equity $ 300,000 240,000 720,000 $1,260,000 (312,000) $ 948,000