Question
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
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 show in your textbook.
***Please show all supporting calculations.
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