Accounting treatment for owner's equity
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Changes in Stockholders Equity
The stockholders' equity section Winslow Design Company's 12-31, 2009 balance
sheet as appeared as follows:
Contributed capital
Preferred stock-$100 par (10,000 shares authorized, 1250 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 commom 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 stockholders; equity 508,800
During 2010 the company entered into the following transactions affecting stockholders equity
1. Issued 250 shares of preferrd stock at $164 per share
2. Issued 3,000 shares of common stock at 17 per share
3. Reaquired 200 of its own common sahes as treasury stock for $15 per share
4. Reissued 250 shares of treasury stock at $17 per share (FIFO)
5. Net income for 2010 was $46,500. Dividends of $25,000 were distributed
Required
1. Prepare a statement of changes in stockholders equiy for the year ended 12-31-2010
2. Compute the return of stockholders equity for 2010
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