Ask Question
5 December, 06:46

At the beginning of Year 1, a company reported a balance in common stock of $154,000 and a balance in retained earnings of $54,000. During the year, the company issued additional shares of stock for $44,000, earned net income of $34,000, and paid dividends of $10,400. In addition, the company reported balances for the following assets and liabilities on December 31. Assets Liabilities Cash $ 53,000 Accounts payable $ 8,600 Supplies 11,300 Utilities payable 3,200 Prepaid rent 26,000 Salaries payable 3,900 Land 220,000 Notes payable 19,000 Required: Prepare a statement of stockholders' equity. Prepare a balance sheet.

+3
Answers (1)
  1. 5 December, 08:23
    0
    statement of stockholders' equity

    for the year 1

    Common Stock Retained Earings Total

    Balance Jan 1 154,000 54,000 208,000

    Net Earnings 34,000 34,000

    Dividends - 10,400 - 10,400

    Stock issued 44,000 44,000

    Balance, Dec 31 198,000 77,600 275,600

    Assets Liability

    Cash 53,000 Account Payable 8,600

    Supplies 11,300 Utilities Payable 3,200

    Prepaid Rent 26,000 Salaries Payable 3,900

    Land 220,000 Note payable 19,000

    Common Stock 198,000

    Retained Earnings 77,600

    Total Assets 310,300 Total Liab + SE 310,300

    Explanation:

    For the stockholder statment, we simply post the values of the first part.

    Then for the balance sheet: We will work with the numbers given in the the second part.

    The payable are the liabilities, the rest are assets.

    Finally, we transfer the stock value from the Stockholders statemnet

    and check the total for each column
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “At the beginning of Year 1, a company reported a balance in common stock of $154,000 and a balance in retained earnings of $54,000. During ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers