Question

Statement of stockholders' equity Financial information related to Organic Products Company for the month ended June 30, 20Y9, is as follows: Net income for June Dividends paid in June Common stock, June 1, 20Y9 Common stock issued in June Retained earnings, June 1, 20Y9 1,680,000 a. Prepare a statement of stockholders' equity for the month ended June 30, 20Y9 119,000 25,000 200,000 40,000 Organic Products Company Statement of Stockholders' Equity For the Month Ended June 30, 20Y9 Common Stock Retained Earnings Total b. Why is the statement of stockholders' equity prepared before the June 30, 20Y9, balance sheet? The statement of stockholders' equity is prepared before the June 30, 20Y9, balance sheet because 20Y9, balance sheet. as of June 30, 20Y9, are needed for the June 30

Answer 1

Solution a:

Organic Products Company
Statement of Stockholders' Equity
For the month ended June 30, 20Y9
	Common Stock	Retained Earnings	Total
Balances, June 1, 20Y9	$2,00,000	$16,80,000	$18,80,000
Issuance of Common stock in June	$40,000		$40,000
Net Income for June		$1,19,000	$1,19,000
Dividends paid		-$25,000	-$25,000
Balances, June 30, 20Y9	$2,40,000	$17,74,000	$20,14,000

Solution b:

The statement of stockholder's equity is prepared before June 30, 20Y9 Balance sheet because "losing Balance of Stockholder's Equity"as of June 30, 20Y9 are needed for the June 30, 20Y9 Balance Sheet.