Question

At the beginning of Year 1, a company reported a balance in common stock of $152,000 and a balance in retained earnings of $52,000. During the year, the company issued additional shares of stock for $42,000, earned net income of $32,000, and paid dividends of $10,200. In addition, the company reported balances for the following assets and liabilities on December 31 $ Cash Supplies Prepaid rent Land $ 52,00 11.109 25,000 210,000 Liabilities Accounts payable Utilities payable Salaries payable Notes payable 7,00 2,803 3.700 17.000 Required: 1. Prepare a statement of stockholders' equity 2. Prepare a balance sheet. Complete this question by entering your answers in the tabs below. Stmt of Stockholders Balance Sheet Equity Prepare a statement of stockholders' equity.

Answer 1

Statement of Stock holder's equity
Particulars	Common stock	Retained earnings	Total Stockholder equity
Beginning balance	152000	52000	204000
Add: Additional Common Stock	42000		42000
Add: Net Income		32000	32000
Less: Dividend		-10200	-10200
Ending Balance	194000	73800	267800
Balance Sheet
Liabilities	Amount	Assets	amount
Current Liabilities		Current Assets
Utilities Payable	2800	Cash	52800
Accounts payable	7600	Supplies	11100
Salaries Payable	3700	Prepaid rent	25000
Notes Payable	17000
Total Current liabilities	31100	Total Current Assets	88900
Stockholders equity		Fixed Assets
Common Stock	194000	land	210000
Retained Earnings	73800	Total Fixed assets	210000
Total Stock holders Equity	267800
Total Liabilities	298900	Total Assets	298900