Question
Please show all work and computations for answers when creating the statement of stockholders equity. Also, please use the columnar format per instructions below Problem
Please show all work and computations for answers when creating the statement of stockholders equity. Also, please use the columnar format per instructions below
Problem 6 (13 Points) The Shareholders Equity section of Hamilton Design Companys December 31, 2019, balance sheet appeared as follows: Contributed Capital: Preferred stock, 6%, $100 par (10,000 shares authorized, 1,250 shares issued) $125,000 Additional paid-in capital on preferred stock 55,000 Common stock, $10 par (60,000 shares authorized, 15,000 shares issued) 150,000 Additional paid-in capital on common stock 105,000 Total contributed capital $435,000 Retained earnings 78,000 Contributed capital and retained earnings $513,000 Less: Treasury stock (300 shares of common at $14 per share) (4,200) Total Shareholders Equity $508,800 During 2020, the company entered into the following transactions affecting shareholders equity: 1. Issued 250 shares of preferred stock at $160 per share. 2. Issued 3,000 shares of common stock at $16 per share. 3. Declared and issued a 15% stock dividend. On the date of declaration, the market price of the shares was $19 per share. 4. Reacquired 200 of its own common shares as treasury stock for $15 per share. 5. Reissued 250 shares of treasury stock at $17 per share (FIFO basis). 6. Net income for 2020 was $70,400. Dividends of $25,000 were distributed.
Instructions: Prepare a statement of stockholders equity for the year ended December 31, 2020, for Hamilton. Use the columnar format shown in your textbook
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