Question

Concord Corporation compiled the following financial information as of December 31, 2022: $837000 Service revenue Common stock Equipment Operating expenses Cash Dividends Supplies Accounts payable Accounts receivable Retained earnings, 1/1/22 190000 250000 726000 225000 60000 34000 120000 94500 437000 Concord's stockholders' equity on December 31, 2022 is: O $644000 O $717000. O $678000. O $471000

Answer 1

Ans: Option ( C) $ 678,000

Explanation:

1) Net Income:

Serivce Revenue	$ 837,000
Less:Operating Expense	($726,000)
Net Income	$111,000

2) Retained Earning Ending ( 12/31/22)

Retained Earning	$ 437,000
Add : Net Income	111,000
Less: Dividend	(60,000)
Retained Earning ( ending balance)	$ 488,000

3) Stockholder' s Equity:

Common Stock	190,000
Retained Earnings	488,000
Stockholders Equity	$678,000