The Accounts from the Stockholders' Equity Section of the Balance

question 27

Essay

The accounts from the stockholders' equity section of the balance sheet of Western Company showed the following at December 31, 2010:

Western issued 475,000 shares of the $1 par value common stock on January 1, 2010.
The company also is authorized to issue 500,000 shares of $5 par value, 6% preferred stock.
During 2011, Western had the following transactions:

Prepare a statement of changes in stockholders' equity for 2011 using the information given above.

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Definitions:

Operating Activities

Activities related directly to the primary, day-to-day operations of a business, including sales, production, and administrative functions.

GAAP

Generally Accepted Accounting Principles, which are standardized guidelines for accounting practices.

Operating Activities

Business activities that relate directly to the production, sale, and delivery of a company's products or services.

Financing Activities

Transactions and events related to raising capital, repaying investors, issuing dividends, and loans that affect a company's capital structure and equity.