Question

At the beginning of the year (January 1), Buffalo Drilling has $11,000 of common stock outstanding and retained earnings of $7,900. During the year, Buffalo reports net income of $8,200 and pays dividends of $2,900. In addition, Buffalo issues additional common stock for $7,700.
  

Required:

Prepare the statement of stockholders' equity at the end of the year (December 31).

Answer 1

Dear Student
Thank you for using Chegg
Please find below the answer
statement of stockholders' equity
Particulars	Amount
Common stock outstanding	11,000.00
Retained earnings	13,200.00
Add Common stock issued	7,700.00
stockholders' equity at the end of the year (December 31).	31,900.00
Statement of retained earnings
Beginning retained earnings	7,900.00
Add Net Income	8,200.00
Less Dividend	(2,900.00)
Ending retained earnings	13,200.00