Question

: Homework Chapter 1 i Help Save & EXIT SU At the beginning of 2018, Artichoke Academy reported a balance in common stock of $155,000 and a balance in retained earnings of $55,000. During the year, the company issued additional shares of stock for $45,000, earned net income of $35,000, and paid dividends of $10,500. In addition, the company reported balances for the following assets and liabilities on December 31. $ Assets Cash Supplies Prepaid rent Land Liabilities 53,100 Accounts payable 11,400 Utilities payable 26,500 Salaries payable 225,000 Notes payable $ 9,100 3,400 4,000 20,000 Required: 1. Prepare a statement of stockholders' equity. ARTICHOKE ACADEMY Statement of Stockholders' Equity Common Stock Retained Total Earnings Stockholders Equity Beginning balance Ending balance

Answer 1

Beginning balance Add: Issued additional shares Add: Net income Less: Dividends Ending balance ARTICHOKE ACADEMY Statement of stockholders' equity Common stock Retained earnings Total stockholders' equity 155,000 55,000 210,000 45,000 45,000 35,000 35,000 (10,500) (10,500) 200,000 79,500 279,500

Assets Cash Supplies Prepaid rent Land ARTICHOKE ACADEMY Balance sheet Liabilities $53,100 Accounts payable $11,400 Utilities payable $26,500 Salaries payable $225,000 Notes payable Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity $316,000 Total liabilities and stockholders' equity $9,100 $3,400 $4,000 $20,000 $36,500 $200,000 $79,500 $279,500 $316,000 Total assets