Question

Statement of Stockholders' Equity On January 1, the credit balance of the Retained Earnings account was $51,000. The company's Common Stock account had an opening balance of $73,000. $9,000 in new capital contributions were made during the year. On December 31, at year-end, the Dividends account had a debit balance of $12,700 before closing. The income statement shows net income of $32,900.Prepare a statement of stockholders' equity for Strife& Company, architectural design firm.

Answer 1

Answer:

Explanation:

The statement of stockholder's equity comprises common stock and retained earnings. The ending balance after adjustment shown in the attached spreadsheet.  

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

And, the ending balance of the common stock = Beginning balance of common stock + issued shares

The preparation of the statement of stockholders’ equity is presented in the spreadsheet. Kindly find the attachment below: