Question
Using the information above prepare a statement of stockholder's equity for the EMD Company at December 31, 2014. (SPECIFICALLY NEED HELP FIGURING OUT THE COMMONSTOCK,
Using the information above prepare a statement of stockholder's equity for the EMD Company at December 31, 2014. (SPECIFICALLY NEED HELP FIGURING OUT THE COMMONSTOCK, THE SOLUTION I HAVE SAYS COMMONS STOCK IS $1434000)
The EMD Company has been in operation for over 40 years and, at December 31, 2013 it had:
- 10,000 Shares issued and outstanding of $20 stated-value convertible preferred stock, that pays a dividend of $3 per share.
- 20,000 Shares of $100 par-value common stock authorized of which 12,000 shares had been issued. The market value of the common stock throughout 2014, until late november was 107.50 per share.
- Additional Contirbuted Capital of $90,000
- Retained Earnings of $520,000
On Sep 1 2014 EMD's Board of Directors declared a 20% common stock dividend to holders of record on october 1, to be distributed on Nov 1. When distributed in Nov, the stock dividend included 6,000 fractional share rights, representing 600 potential shares. By Dec 15, 2014, 90% of the rights had been exercised; the remaining rights were not exercised until 2015.
on Dec, 1, 2014, EMD acquired 1800 shares of its own common stock for $106 per share.
Net income for 2014 was $180,000
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