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Following Is the Shareholders' Equity Section of the Balance Sheet

Question 63

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Following is the shareholders' equity section of the balance sheet of Downing Corporation as of November 1,2017:
Preferred shares, $3, noncumulative, 10,000 sharesauthorized, 6,500 shares issued$325,000Common shares, 300,000 shares authorized,120,000 shares issued 1,620,000 Total contributed capital 1,945,000 Retained earnings 467,200 Total shareholders’ equity $2,412,200\begin{array}{lr}\text {Preferred shares, \( \$ 3 \), noncumulative, 10,000 shares}\\\text {authorized, 6,500 shares issued}&\$ 325,000 \\\text {Common shares, 300,000 shares authorized,}\\120,000 \text { shares issued } & \underline{1,620,000} \\\text { Total contributed capital } & 1,945,000 \\\text { Retained earnings } & \underline{467,200} \\\text { Total shareholders' equity } & \underline{ \$ 2,412,200}\end{array} Downing Corporation reported the following transactions during November,2017:
Nov. 1 \quad Declared the required annual cash dividend on the preferred shares and a $0.50\$ 0.50 dividend on the common shares.
15 \quad Paid the dividends declared on November 1.
16 \quad Declared a 10\% common stock dividend. The market value of the common shares is $15.00per\$ 15.00 \mathrm { per } share.
26 \quad Distributed the common stock dividend declared on November 16.
30 \quad The board of directors announced a 2-for-1 stock split. Show the dollar amount of the effect of each transaction on both total contributed capital and total shareholders' equity.
 Date  Total Contributed Capital  Total Shareholders’ Equity  Nov. 115162630\begin{array} { | r | l | l | } \hline \text { Date } & \text { Total Contributed Capital } & \text { Total Shareholders' Equity } \\\hline \text { Nov. } 1 & & \\\hline 15 & & \\\hline 16 & & \\\hline 26 & & \\\hline 30 & & \\\hline\end{array}

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