Question

At the beginning of 2018, Artichoke Academy reported a balance in common stock of $151,000 and a balance in retained earnings of $51,000. During the year, the company issued additional shares of stock for $41,000, earned a net income of $31,000, and paid dividends of $10,100. In addition, the company reported balances for the following assets and liabilities on December 31.
Assets Liabilities
Cash $ 52,700 Accounts Payable $ 7,100
Suppies 11,000 Utilities Payable 2,600
Prepaid Rent 24,500 Salaries payable 3.600
Land 205,000 Notes payable 16,000
Required:
Prepare a statement of stockholders' equity.

Answer 1

Answer:

$261,900

Explanation:

Preparation of a statement of stockholders' equity

Statement of stockholders' equity:

Beginning balance Jan1 $200,000

($151,000+$51,000)

Add Issuance of common stock $41,000

Add Net income $31,000

Less Dividend ($10,100)

Statement of stockholders' equity $261,900

Therefore the stockholders' equity will be $261,900