Solution:
1) Calculating Stockholders Equity, Assuming net income is $ 80,000.
J. Smith | ||
Balance Sheet (partial) | ||
For the year ended December 31,2018 | ||
Stockholder's equity : | ||
Common Stock | $ 408,000 | |
Additional Paid in capital | ||
Total Additional Paid in capital | $ - | |
Total paid in capital | $ 408,000 | |
Retained earnings (Note:a) | $ 112,000 | |
Total stockholder's Equity | $ 520,000 |
Note:
a) Calculation of retained earnings
J. Smith | ||
Statement of Retained earnings | ||
For the year ended December 31,2018 | ||
Retained earnings, January 1,2018 | $ 104,000 | |
Add: Net income (Assumed) | $ 80,000 | |
Subtotal | $ 184,000 | |
(Less): Dividends | $ (72,000) | |
Retained earnings, December 31,2018 | $ 112,000 |
2) Calculating Stockholders Equity without Net Income Assumption.
Total Stockholders Equity can be calculated in 2 ways
1) Total Stockholders Equity = Total Assets - Total Liabilities
2) Total Stockholders Equity = Paid up capital + Retained Earnings.
Here we are following first method, Total Stockholders Equity = Total Assets - Total Liabilities
Calculation of Total Stockholders Equity:
Total Assets | Amount $ |
Equipment | $ 541,600 |
Cash | $ 80,000 |
Accounts Receivable | $ 60,000 |
Dental Supplies | $ 36,000 |
Total | $ 717,600 |
Total Liabilities | |
Accounts Payable | $ 87,600 |
Total | $ 87,600 |
Stockholders Equity | $ 630,000 |
Assume net income for 2018 is $80,000. Compute total stockholders' equity as of Dec. 31,2018. uires...
Brightspace 1- Requires Respondus LockDown Browser it: 1:30:00 Time Left:1:11:07 Brianna Brown: Attempt 1 Question 5 (5 points) Data for the next 3 questions: The following account balances pertain to the dental practice of J. Smith, DDS, as of Dec. 31, 2018. 3 Equipment $541,600 $408,000 $400,000 Common Stock Service Revenue Retained Earmings (as of Jan. Ist) S104,000 Cash S80,000 Accounts Payable Salaries Expense S87,600 $132,000 Dividends Accounts Receivable Dental Supplies Expense Dental Supplies Rent Expense Utilities Expense $72.000 $60,000...
Prepare an; income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flow for Year One orvos Google Scholar Cover Stories on Fli... Suggested Sites O Mail-mmontanye1.. ter 3 - Homework i Help The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $45,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $24,000 cash. Apr. 10 Purchased $3,200...