Question

How is the Stockholders' Equity section of a corporate balance sheet different from that in a...

How is the Stockholders' Equity section of a corporate balance sheet different from that in a single-owner business?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer

--Single owner business has a owner that himself introduce capital to his business. Net income earned or loss suffered by that owner himself. He also withdraws certain amount from his business.

--Corporate business has several owners who invest capital in form of share stock. Dividend is paid to them out of retained profits.

--Single owner business Stockholder's equity is usually termed as "Owner's equity". It shows capital introduction and withdrawals and addition of net income or deduction of net loss.

--Corporate business Stockholder's equity contains details regarding paid up stock capital and Retained earnings. Retained earnings include past profits and losses reduced by dividends paid to owners.

Owner's Equity

Stockholder's Equity

Owner's beginning capital

XXX

Common Stock

XXX

Add: Capital introduced

XXX

Retained earnings:

Add: Net Income (Loss)

XXX

Beginning

XXX

Less: Withdrawals

XXX

Add: Net Income

XXX

Owner's ending capital

XXX

Less: Dividends

XXX

Ending balance

XXX

Total Stockholder's equity

XXX

Add a comment
Know the answer?
Add Answer to:
How is the Stockholders' Equity section of a corporate balance sheet different from that in a...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 1. How is the stockholders' equity section of a corporate balance sheet different from that in...

    1. How is the stockholders' equity section of a corporate balance sheet different from that in a single-owner business?

  • Stockholders' Equity Section of Balance Sheet The following Stockholders' Equity section of the balance sheet prepared...

    Stockholders' Equity Section of Balance Sheet The following Stockholders' Equity section of the balance sheet prepared as of the end of the current year contains errors. Stockholders' Equity Paid-in capital: Preferred 2% stock, $80 par (125,000 shares authorized and issued) Excess of issue price over par Paid-in capital, preferred stock Retained earnings Treasury stock (75,000 shares at cost) Dividends payable 10,000,000 500,000 $10,500,000 96,700,000 1,755,000 430,000 $109,385,000 17,655,000 300,000 Total paid-in capital Common stock, $20 par (1,000,000 shares authorized, 825,000...

  • Stockholders' Equity Section of Balance Sheet The following Stockholders' Equity section of the balance sheet prepared...

    Stockholders' Equity Section of Balance Sheet The following Stockholders' Equity section of the balance sheet prepared as of the end of the current year contains errors. Stockholders' Equity Paid-in capital: Preferred 2% stock, $80 par (125,000 shares authorized and issued) $10,000,000 Excess of issue price over par 500,000 Paid-in capital, preferred stock $10,500,000 Retained earnings 96,700,000 Treasury stock (75,000 shares at cost) 1,755,000 Dividends payable 430,000 Total paid-in capital $109,385,000 Common stock, $20 par (1,000,000 shares authorized, 825,000 shares 17,655,000...

  • Chapter 13 Homework Stockholders' Equity Section of Balance Sheet Below is the stockholders' Equity section of...

    Chapter 13 Homework Stockholders' Equity Section of Balance Sheet Below is the stockholders' Equity section of the balance sheet prepared as of the end of the current year $10,000,000 500,000 Stockholders' Equity Pald-in capital: Preferred 2% stock, $80 par (125,000 shares authorized and issued) Excess of issue price over par Retained earnings Treasury stock (75,000 shares at cost) Dividends payable Total paid-in capital Common stock, 520 par (1,000,000 shares authorized, 825,000 shares issued) Organizing costs Total stockholders' equity Prepare a...

  • Stockholders' Equity Prepare the stockholders' equity section of a balance sheet The financial statements of Ridgeline...

    Stockholders' Equity Prepare the stockholders' equity section of a balance sheet The financial statements of Ridgeline Employment Services, Inc., reported the following accounts $1,600,000 100,000 660,000 200,000 1,000,000 Paid-in capital in excess of par $334,000 Total revenue:s Notes payable (short-term) Common stock, $0.01 par 600,000 shares issued Long-term debt 50,000 Accounts payable 6,000 Retained earnings Other current liabilities 25,000 Total expenses Use the blue shaded areas on the ENTERANSWERS tab for inputs Always use cell references and formulas where appropriate...

  • Problem 8-25 Analyzing the stockholders' equity section of the balance sheet The stockholders' equity section of...

    Problem 8-25 Analyzing the stockholders' equity section of the balance sheet The stockholders' equity section of the balance sheet for Mann Equipment Co. at December 31, 2016, is as follows. Stockholders Equity Paid-in capital 200,000 Preferred stock, ? par value, 6% cumulative, 100,000 shares authorized 10,000 shares issued and outstanding Common stock, $10 stated value, 200,000 shares authorized, 100,000 shares issued and ?? shares outstanding 1,000,000 Paid-in capital in excess of par- Preferred 25,000 Paid-in capital in 50o,000 excess of...

  • Stockholders' Equity section of balance sheet Instructions Accounts and Amount Descriptions Stockholders' Equity Instructions The following...

    Stockholders' Equity section of balance sheet Instructions Accounts and Amount Descriptions Stockholders' Equity Instructions The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year. $3,073,800.00 Common stock, $47 par Paid-In Capital from Sale of Treasury Stock Paid-In Capital in Excess of Par-Common Stock 119,000.00 3 261,600.00 Retained Earnings 19,185,100.00 5 Treasury Stock 326,800.00 Prepare the Stockholders' Equity section of the balance sheet as of June 30 using Method 1...

  • At the beginning of the year, the stockholders' equity section of the balance sheet of Solutions...

    At the beginning of the year, the stockholders' equity section of the balance sheet of Solutions Corporation reflected the following: Common stock ($14 par value; 79,000 shares authorized, 43,000 shares outstanding) Additional paid-in capital Retained earnings $602,000 129,000 750,000 On February 1, the board of directors declared a 60 percent stock dividend to be issued April 30. The market value of the stock on February 1 was $17 per share. The market value of the stock on April 30 was...

  • Following is the stockholders' equity section from the The Walt Disney Company balance sheet. Stockholders' Equity...

    Following is the stockholders' equity section from the The Walt Disney Company balance sheet. Stockholders' Equity ($ millions) Sep. 29, 2018 Sep. 30, 2017 Preferred stock $0 $0 Common stock, $0.01 par value, Authorized -4,600 shares, Issued -2,900 shares 36,779 36,248 Retained earnings 82,679 72,606 Accumulated other comprehensive loss (3,097) (3,528) Stockholders' Equity subtotal before Treasury Stock, Total 116,361 105,326 Treasury stock, at cost, 1,400 shares (67,588) (64,011) Total Disney Shareholders' equity 48,773 41,315 Noncontrolling interests 4,059 3,689 Total equity...

  • Following is the stockholders’ equity section of a recent balance sheet for Portlands, Inc.: Stockholders’ Equity:...

    Following is the stockholders’ equity section of a recent balance sheet for Portlands, Inc.: Stockholders’ Equity: Preferred stock, $0.01 par value, authorized shares – 100,000, issued shares – none — Common stock, $1.25 par value, authorized shares, – 400,000, issued shares – 241,764 $    302,205 Capital in excess of par 604,410 Retained earnings 5,840,053 Accumulated other comprehensive loss (100,304) Common stock in treasury, at cost – 75,000 shares (2,647,500) Total stockholders’ equity $ 3,998,864 Verify the $302,205 balance for the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT