Question

Exercise 1-11A Link the statement of stockholders' equity to the balance sheet (LO1-3) At the beginning of 2021, Artichoke Academy reported a balance in common stock of $155,000 and a balance in retained earnings of $55,000. During the year, the company issued additional shares of stock for $45,000, earned net income of $35,000, and paid dividends of $10,500. In addition, the company reported balances for the following assets and liabilities on December 31. Assets Cash Supplies Prepaid rent Land $ 53, 100 11,400 26,500 225,000 Liabilities Accounts payable Utilities payable Salaries payable Notes payable $ 9,100 3,400 4,000 20,000 Required: 1. Prepare a statement of stockholders' equity. 2. Prepare a balance sheet. Complete this question by entering your answers in the tabs below. Stmt of Stockholders Balance Sheet Equity Prepare a statement of stockholders' equity. ARTICHOKE ACADEMY Statement of Stockholders' Equity For the Year Ended December 31, 2021 Common Stock Retained Earnings $ 55,000 Total Stockholders Equity $ 210,000 45,000 $ 155,000 45,000 Beginning Balance Issuance of Common Stock Add: Net income Less: Dividends Ending Balance 0 200,000 4,800 11,800 104,200 $ $ $ 330,200 < Stmt of Stockholders Equity Balance Sheet >

Answer 1

Ans. 1	ARTICHOKE   ACADEMY
	Statement of Stockholder's Equity
	For the Year Ended December 31, 2021
		Common stock	Retained earnings	Total stockholder's equity
	Beginning balance	$155,000	$55,000	$210,000
	Issuance of common stock	$45,000		$45,000
	Add: Net income		$35,000	$35,000
	Less: Dividends		-$10,500	-$10,500
	Ending balance	$200,000	$79,500	$279,500
	*Total stockholder's equity = Common stock + Retained earnings
Ans. 2	ARTICHOKE   ACADEMY
	Balance Sheet
	For the Year Ended December 31 2021
	Assets:
	Cash	$53,100
	Supplies	$11,400
	Prepaid rent	$26,500
	Total current assets		$91,000
	Land	$225,000
	Total non current assets		$225,000
	Total Assets		$316,000
	Liabilities and Stockholder's Equity:
	Liabilities:
	Accounts payable	$9,100
	Utilities payable	$3,400
	Salaries payable	$4,000
	Notes payable	$20,000
	Total Liabilities		$36,500
	Stockholder's equity:
	Common stock	$200,000
	Retained earnings	$79,500
	Total Stockholder's Equity		$279,500
	Total Liabilities and Stockholder's Equity		$316,000
	Total Assets   =   Total current assets + Total Non current assets
	Total Liabilities and Stockholder's Equity = Total liabilities + Total stockholder's equity