Prepare a statement of stockholders' equity
E1–7 At the beginning of the year (January 1), Buffalo Drilling has $11,000 of common stock outstanding
and retained earnings of $8,200. During the year, Buffalo reports net income of $8,500 and pays dividends
of $3,200. In addition, Buffalo issues additional common stock for $8,000.
Prepare the statement of stockholders’ equity at the end of the year (December 31).
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