The Following Is Selected Financial Information for Osmond Dental Laboratories

Essay

The following is selected financial information for Osmond Dental Laboratories for 2008 and 2009:
Osmond issued 2,000 shares of additional capital stock in 2009 for $20,000. There were no other capital transactions.
Required: Prepare a statement of shareholders' equity for Osmond Dental Laboratories for the year ended December 31, 2009.
$\begin{array}{lrr}&2008&2009\\\text { Retained earnings, January } 1 & \$ 53,000 & ? \\\text { Net income } & 37,000 & 42,000 \\\text { Dividends declared and paid } & 15,000 & 18,000 \\\text { Capital stock } & 70,000 & ?\end{array}$