Question

Statement of stockholders' equity After its first month of operations, the following amounts were taken from the accounting records of West Coast Dreams Realty Inc. as of June 30, 2019. Cash $79,500 Notes payable $52,500 Common stock 37,500 Rent expense 7,500 Dividends 15,000 Retained earnings 0 Interest expense 3,000 Salaries expense 112,500 Land 63,000 Sales commissions 217,500 Miscellaneous expense 4,500 Utilities expense 22,500 Prepare a statement of stockholders' equity for the month ended June 30, 2049. If an amount box does not require an entry, leave it blank or enter "O". West Coast Dreams Realty Inc. Statement of Stockholders' Equity For the Month Ended June 30, 2049 Common Stock Retained Earnings Total Balances, June 1, 2049 Balances, June 30, 2019 $

Answer 1

Solution :

Step 1 : Net Income = Total Revenue - Total Expenses

Sales Commission	$ 217,500
Less : Expenses :
Interest Expenses	$ 3,000
Miscllaneous Expenses	$ 4,500
Rent Expenses	$ 7,500
Salaries Expenses	$ 112,500
Utilities Exenses	$ 22,500
Net Income	$ 67,500

Step 2 : Statement of Stockholder's Equity :

	Common Stock	Retained Earning	Total
Balance, June 01, 2019	$ 0	$ 0	$ 0
Issued Common Stock	$ 37,500	$ 0	$ 37,500
Net Income	$ 0	$ 67,500	$ 67,500
Dividend*	$ 0	$ 15,000	$ 15,000
Balance, June 30, 2019	$ 37,500	$ 52,500	$ 90,000

* Please write negative figure of dividend if table does not accept figure as this figure is to be deducted.

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