Question

Vaughn Co. reports the following information for 2020: sales revenue $763,800, cost of goods sold $501,800, operating expenses $83,200, and an unrealized holding loss on available-for-sale debt securities for 2020 of $56,700. It declared and paid a cash dividend of $11,270 in 2020.

Vaughn Co. has January 1, 2020, balances in common stock $362,500; accumulated other comprehensive income $86,300; and retained earnings $94,270. It issued no stock during 2020. (Ignore income taxes.)

Prepare a statement of stockholders’ equity.

Vaugha Coreports the following information for 2020 and pada cash dividend of 11270 in 2020 es revenue 03.00, 101.800, 1200, and an e -for- For the e nded December 2010 Accumulated Other Beginning Malance

Answer 1

VAUGHN CO. STATEMENT OF STOCKHOLDERS EQUITY FOR THE YEAR ENDED DECEMBER 31 ,2020
	Total	Retained earning	Accumulated other comprehensive income	common stock
Beginning balance	543070	94270	86300	362500
Net Income	178800	178800
other comprehensive income
Unrealized holding loss	-56700		-56700
Dividend	-11,270	-11270
Ending balance	653900	261800	29600	362500

Working :

a)Net income =sales revenue -cost of goods sold -operating expense

            = 763800- 501800 -83200

            = 178800