Question

Raider Consulting Corp began operations on January 1, 2020. They issued 13,500 shares of $2 par value common stock. Chart of Accounts: 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 31 Common Stock, $2 par 32 Paid in Capital in Excess of Par 33 Retained Earnings 34 Dividends Declared 41 Fees Earned 51 Salaries Exp 52 Rent Exp 53 Supplies Exp 54 Depreciation Exp 55 Insurance Exp 56 Advertising Exp 59 Misc Exp Raider Consulting Trial Balance January 31, 2020 Credits Debits 25,680 3,400 1,350 3,200 2,200 16,300 Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Office Equip Accumulated Depr Accounts Pay Salaries Pay Unearned Fees Common Stock Paid in Capital in excess of par Retained Earnings 380 650 450 2,250 35,000 2,300 11,100

prepare a statement of shareholders' equity

Answer 1

Raider Consulting Corp.
Statement of Stockholders' Equity
At the end of February
Common Stock [$35,000 + (800 shares * $2 per share)]	$36,600
Paid in Capital in Excess of Par [$2,300 + ($2.5 - $2 = $0.50 per share * 800 shares)	$2,700
Retained Earnings ($11,100 + $10,125 - $6,500)	$14,725
Total Shareholders' Equity	$54,025
Working note for net income:
Service Revenue ($5,000 + $2,500 + $2,875 + $2,550)	$12,925
Less: Expenses:
Salaries ($950 + $950)	($1,900)
Advertising expenses	($350)
Telephone expenses	($250)
Electricity expenses	($300)
Net Income	$10,125