Question - Shareholders Statement of Equity
B Company was formed on July 1, 2013. It was authorized to issue 1M shares of $5 par value common stock and 200K shares of 4% $100 par value, cumulative preferred stock. The company has a July 1 to June 30 fiscal year.
Prior to 2017-18 the company had the following transactions
a. 220K shares were issued on July 1, 2013 at $24 per share
b. On August 4, 2015, 24K shares were exchanged for a building and warehouse that had an estimated fair value of $627K.
c. 60K shares were issued on Nov. 1, 2016 at $29 per share
d. On August 31, 2017, B purchased 5K of its shares at $30 per share
e. On Dec. 1, 2017, B declared a 6% stock dividend. At the time the common stock was selling at $28 per share
f. On June 20, 2018, the company sold 1.5K shares it had purchased on Aug 31, 2017, for $36K
g. B issued 20K shares of Preferred at $105 on Oct. 1, 2016
h. Cash dividends
a. 6/1/15, $0.5 on common and $2 on common
b. 12/1/16, same as 6/1/15
c. 6/1/17, $0.4 on common and $2 on preferred
d. 12/1/17, $2 on preferred
e. Cash dividends not declared on 6/18
i. As of June 30, 2017, b had $824K in retained earnings. For fiscal year 2018, the B reported net income of $32K
Prepare the shareholders equity statement for the balance sheet for June 30, 2018.