Question

Waterway Industries compiled the following financial information as of December 31, 2022: Service revenue Common stock Equipment Operating expenses Cash Dividends Supplies Accounts payable Accounts receivable Retained earnings, 1/1/22 $836000 185000 246000 728000 205000 56000 38000 100000 94000 449000 Waterway's stockholders' equity on December 31, 2022 is:

Answer 1

Waterway's Stockholder's Equity Dec 31, 2022 Common Stock $ 1,85,000 Add:Retained Earnings 1/1/22 $ 4,49,000 Add:Net profit(Note) $ 1,08,000 $ 7,42,000 Less:Dividend $ 56,000 Stockholder's Equity Dec 31, 2022 $ 6,86,000

Note: Service revenue $ 8,36,000 Less: Operating Expense $ 7,28,000 Net profit $ 1,08,000

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