Question

Romney's Marketing Company has the following adjusted trial balance at the end of the current year No dividends were declared. However, 510 shares ($0.10 par value per share) issued at the end of the year for $2,870 are included below $ 1,590 2,370 160 1,770 2,900 15,200 Cash Accounts receivable Interest receivable Prepaid insurance Notes receivable (long-term) Equipment Accumulated depreciation Accounts payable Accrued expenses payable Income taxes payable Unearned rent revenue Common Stock (820 shares) Additional paid-in capital Retained earnings Sales revenue Interest revenue Rent revenue Wages expense Depreciation expense Ufilities expense S 2,900 2,380 3,860 2,650 360 82 3,518 3,690 37,550 140 550 18.200 1,750 410 720 9,900 2,710 Insurance expense Rent expense Income tax expense Total 57 680 5 57 680 Prepare a statement of stockholders' equity in good form for the current year ROMNEY'S MARKETING COMPANY Statement of Stockholders' Equity Additional Retained Stock Paid-in Capital Earnings Total Stockholders Equity Common Balance, January 1 Balance, December 31 O Type here to search

Answer 1

ROMNEY'S MARKETING COMPANY Statement of Stockholders' Equity Common stock|Additoinal Paid in capital Retained Earnings Total Stockholders' Equity 4420 2870 4550 Balance, January 1 (Note 3) Share issuance (Note 1) Net income (Note 2) Dividends declared Balance, December 31 3690 31 699 51 2819 4,550 C C C C 82 3518 8240 11840 Common stock Additoinal Paid in capital 510 0.1 Note 1: Share issuance 2870-510*0.1 Note 2: calculation of net income Sales revenue Interest revenue 37,550 140 550 Rent revenue Total revenue 38,240 Expenses: Wages expense Depreciation expe ns e Utilities expense Insurance expense Rent expense Income tax expense Total expense Net income 18,200 1,750 410 720 9,900 2,710 33,690 4,550 Note 3: Balance, December 31 Less Share issuance |Common stock Additoinal Paid in capital 82 3518 -2819 -51 Balance, January 1 31 699