Question

1. Statement of stockholders’ equity

   Climate Control Systems Co. offers its services to residents in the Spokane area. Selected accounts from the ledger of Climate Control Systems for the fiscal year ended December 31, 20Y2, are as follows:

   Common Stock
   		Jan. 1	75,000
   		Feb. 15	25,000

   Retained Earnings					Dividends
   Dec. 31	160,000	Jan. 1 (20Y2)	4,150,800		Mar. 31	40,000	Dec. 31	160,000
   		Dec. 31	700,000		June 30	40,000
   					Sept. 30	40,000
   					Dec. 31	40,000

   
   

   Prepare a statement of stockholders’ equity for the year ended December 31, 20Y2. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.

   Climate Control Systems Co.
   Statement of Stockholders’ Equity
   For the Year Ended December 31, 20Y2
   	Common Stock	Retained Earnings	Total
   Balances, January 1, 20Y2 Cash Balances, January 1, 20Y2 Balances, December 31, 20Y2 Net income Net loss	$	$	$
   Issued common stock Cash Fees earned Issued common stock Miscellaneous expense Wages expense
   Net income Cash Balances, January 1, 20Y2 Balances, December 31, 20Y2 Net income Net loss
   Dividends Dividends Fees earned Office expense Miscellaneous expense Wages expense
   Balances, December 31, 20Y2 Cash Balances, January 1, 20Y2 Balances, December 31, 20Y2 Net income Net loss	$	$	$

Answer 1

Climate Control Systems Co.
Statement of Stockholders' Equity
For the Year Ended December 31, 20Y2
	Common Stock	Retained Earnings	Total
Balances, January 1, 20Y2	$75,000	$4,150,800	$4,225,800
Issued common stock	$25,000		$25,000
Net Income		$700,000	$700,000
Dividends		($160,000)	($160,000)
Balances, December 31, 20Y2	$100,000	$4,690,800	$4,790,800