Question

At the beginning of 2021, Artichoke Academy reported a balance in common stock of $150,000 and a balance in retained earnings of $50,000. During the year, the company issued additional shares of stock for $40,000, earned net income of $30,000, and paid dividends of $10,000. In addition, the company reported balances for the following assets and liabilities on December 31. Assets Cash Supplies Prepaid rent Land $ 52,600 13,400 24,000 200,000 Liabilities Accounts payable Utilities payable Salaries payable Notes payable $ 9,100 2,400 3,500 15,000 Required: 1. Prepare a statement of stockholders' equity. 2. Prepare a balance sheet. Complete this question by entering your answers in the tabs below.

Answer 1

A B C D 1 2 ARTICHOKE ACADEMY Statement of Stockholders' Equity For the Year Ended December 31, 2021 3 Retained earnings Common stock 4 5 Beginning balance $ 150,000 $ 6 Issuance of common stock $ 40,000 7 Add: Net income $ 8 Less: Dividend $ 9 Ending balance $ 190,000 $ 10 Total stockholder's equity 50,000 $ 200,000 $ 40,000 30,000 $ 30,000 - 10,000 $ - 10,000 70,000 $ 260,000 11 12 ARTICHOKE ACADEMY Balance Sheet December 31, 2021 13 Assets Liabilities 14 15 Cash 16 Supplies 17 Prepaid rent 18 land 19 $ $ $ $ 52,600 Account payable 13,400 Utilities payable 24,000 Salaries payable 200,000 Notes payable $ $ $ $ 9,100 2,400 3,500 15,000 20 $ 30,000 21 Total liabilities Stockholder's Equity Common stock Retained earnings 22 $ $ 190,000 70,000 23 24 25 Total stockholder's equity $ 290,000 Total liabilities and stockholder's equity $ 260,000 290,000 26 Total Assets $

А B C w N. 1 ARTICHOKE ACADEMY 2 Statement of Stockholders' Equity For the Year Ended December 31, 2021 Total Common stock Retained earnings stockholder's 4 equity 5 Beginning balance 150000 50000 =+B5+C5 6 Issuance of common stock 40000 =+B6+C6 7 Add: Net income 30000 =+B7+C7 8 Less: Dividend -10000 =+C8 9 Ending balance =+B5+B6 =+C5+C7+C8 =+D5+D6+D7+D8 10 11 ARTICHOKE ACADEMY 12 Balance Sheet 13 December 31, 2021 14 Assets Liabilities 15 Cash 52600 Account payable 9100 16 Supplies 13400 Utilities payable 2400 17 Prepaid rent 24000 Salaries payable 3500 18 land 200000 Notes payable 15000 19 20 Total liabilities =SUM(D15:018) 21 Stockholder's Equity 22 Common stock =+B9 23 Retained earnings =+C9 24 25 Total stockholder's equity =+D22+D23 26 Total Assets =SUM(B15:318) Total liabilities and stockholder's equity =+D20+D25