Question

bramble Corp. began the year with $123500 in its Common Stock account and a debit balance in Retained Earnings of $52900. During the year, the company earned net income of $26500 and declared and paid $8800 of dividends. In addition, the company sold additional common stock amounting to $32300. Based on this information, what should the transaction analysis show for the ending total of all stockholders' equity accounts?

Answer 1

Answer:

Common Stock Balance $ 155,800

Retained Earnings Balance $ 70,600

Explanation:

Ending Balance

Stockholders' Equity  $ 155,800

Retained Earnings  $ 70,600

TOTAL EQUITY  $ 226,400

Retained Earnings Report  

Opening retained earnings $ 52,900

Add: Net Income $ 26,500

Subtotal $ 79,400

Less: Dividens -$ 8,800

Total $ 70,600

Common Sotck  

Inicial Stock  $ 123,500

Stock Dividends $ 0

Subtotal $ 123,500

Additional Common Stock  $ 32,300

Total $ 155,800