On January 1, 2016 Hammer Company Listed the Following Shareholders’

question 80

Essay

On January 1, 2016 Hammer Company listed the following shareholders’ equity section of its balance sheet:


During 2016, the following transactions and events occurred and were recorded: 1.) Hammer issued 50,000 shares of common stock at $3 per share.
2.) Hammer earned net income of $175,900.
3.) Hammer paid a cash dividend of $.10 per share of common stock
4.) Hammer had an unrealized loss associated with some available-for-sale securities in the amount of $1,450.

Required:
Prepare Hammer's statement of shareholders' equity for 2016.

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Definitions:

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to more money flowing out than coming in.

Defense Equipment

Military and defense-related hardware and technology designed for use by the armed forces and security personnel.

Capital Equipment

Capital equipment comprises the long-term assets used in the production of goods and services, such as machinery, buildings, and vehicles, essential for business operations.

Food Items

are consumable products intended for human nutrition, including fruits, vegetables, meats, grains, and dairy products.