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:

Crown Gear Teeth

The projections on the circumference of a crown gear that mesh with other gear components to transmit torque.

Two-speed Rear Drive

A feature in some vehicles where the rear drive axle can operate at two different speeds, improving efficiency or power.

Speedometer Input

The signal or data fed into a vehicle's speedometer, enabling it to display the vehicle's current speed.

Tachometer Input

An interface or signal used to connect a tachometer, a device measuring the rotation speed of a shaft or disk, to a system for monitoring.