Question

172. The following account balances appear in the 2015 adjusted trial balance of

Diamond Corporation: Common Stock, $21,000; Retained Earnings, $8,000; Dividends,

$2,000; Service Revenue, $30,000; Salaries Expense, $13,000; and Utilities Expense,

$7,000. No common stock was issued during the year. Prepare the statement of

stockholders’ equity for the year ended December 31, 2015.

173. The following is selected financial information for Osmond Dental Laboratories for 2015 and 2016:

	2015	2016
Retained earnings, January 1	$53,000	?
Net income	37,000	42,000
Dividends declared and paid	15,000	18,000
Common stock	70,000	?

Osmond issued 2,000 shares of additional capital stock in 2016 for $20,000. There were no other capital transactions. Prepare a statement of stockholders’ equity for the year ended December 31, 2016.

Answer 1

172.

Diamond Corporation
Statement of stockholders’ equity
For the year ended December 31, 2015
	Common Stock	Retained earnings	Total stockholders equity
Balance at January 1	21000	8000	29000
Issuance of common stock	0	0	0
Add: Net Income for 2015	0	10000	10000
Less: Dividends		2000	2000
Balance at December 31	21000	16000	37000

Service Revenue	30000
Salaries Expense	-13000
Utilities Expense	-7000
Net income	10000

173.

Osmond Dental Laboratories
Statement of stockholders’ equity
For the year ended December 31, 2016
	Common Stock	Retained earnings	Total stockholders equity
Balance at January 1	70000	75000	145000
Issuance of common stock	20000	0	20000
Add: Net Income for 2015	0	42000	42000
Less: Dividends		18000	18000
Balance at December 31	90000	99000	189000

Retained earnings as on 2016:

Balance at January 1	53000
Add: Net Income for 2015	37000
Less: Dividends	15000
Balance at December 31	75000