E4-11      Changes in Stockholders’ Equity On January 1, 2007 the Powder Company listed the following stockholders’ equity section of its balance sheet:

Contributed Capital

 

Preferred stock, $100 par	$ 92,800
Common stock, $5 par	37,400
Additional paid-in capital on preferred stock	21,500
Additional paid-in capital on common stock   58,700
Total contributed capital	$ 210,400
Retained Earnings	  185,700
Total Stockholders’ Equity	$396,100

During 2007, the following transactions and events occurred and were properly recorded:

1.      The company issued 1,800 shares of common stock at $13 per share.

2.      The company issued 340 shares of preferred stock at $130 per share.

3.      The company earned net income of $38,950.

4.      The company paid a $7 per share dividend on the preferred stock and a $1 per share dividend on the common stock out- standing at the end of 2007.

Required

Prepare a statement of changes in stockholders’ equity of the Powder Company for 2007. (Include retained   earnings.)