Question

an unrealized holding gain on available-for-sale debt securities $18,000. Instructions ment format. (Ignore income taxes and earnings per share.) E4.16 (L05) (Comprehensive Income) C. Reither Co. reports the following information for 2020: sales revenue $700,000, cost of goods sold $500,000, operating expenses $80,000, and an unrealized hold ing loss on available-for-sale debt securities for 2020 of $60,000. It declared and paid a cash dividend of $10,000 in 2020. C. Reither Co. has January 1, 2020, balances in common stock $350,000; accumulated other compre- hensive income $80,000; and retained earnings $90,000. It issued no stock during 2020. Instructions Prepare a statement of stockholders' equity. (Ignore income taxes.) om the Prepare a statement of comprehensive income, using (a) the one statement format, and (b) the two state.

Answer 1

C REITHER CO. STATEMENT OF STOCKHOLDERS EQUITY FOR THE YEAR ENDED DECEMBER 31 ,2020
	Total	Retained earning	Accumulated other comprehensive income	common stock
Beginning balance	$520,000	$90,000	$80,000	$350,000
Net Income	$120,000	$120,000
other comprehensive income
Unrealized holding loss	-60,000		-$60,000
Dividend	-10,000	-10,000
Ending balance	$570,000	$200,000	$20,000	$350,000

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

            = $700,000- $500,000 -$80,000

            = 120,000

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