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12 August, 23:52

Service revenue $ 78,500 Rent expense 21,000 Postage expense 1,500 Salaries expense 22,000 Legal fees expense 2,600 Supplies expense 20,000 In addition, the balance of common stock at the beginning of the year was $175,000, and the balance of retained earnings was $36,000. During the year, the company issued additional shares of common stock for $30,000 and paid dividends of $20,000. Required: Prepare an income statement. Prepare a statement of stockholders' equity.

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  1. 13 August, 03:00
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    statement of stockholders' equity

    for the year ended 31th December 20XX

    Common Stock Retained Earings Total

    Balance Jan 1 175,000 36,000 211, 000

    Net Earnings 30,900 30,900

    Dividends - 20,000 - 20,000

    Stock issued 30,000 30,000

    Balance, Dec 31 205,000 46,900 251,900

    Explanation:

    The first step, will be to calculate the net incoem:

    Revenue 78,000

    Rent expense 21,000

    postage expense 1,500

    salaries expenses 22,000

    legal fees expense 2,600

    Total expense (47,100)

    Net earnings 30,900

    And now we can build the statement of Stockholders equity
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