Question

Statement of stockholders’ equity Financial information related to Organic Products Company for the month ended June 30, 20Y9, is as follows: Net income for June $ 112,000 Dividends paid in June 26,000 Common stock, June 1, 20Y9 150,000 Common stock issued in June 70,000 Retained earnings, June 1, 20Y9 1,610,000 a. Prepare a statement of stockholders’ equity for the month ended June 30, 20Y9.

Answer 1

The Statement of Stockholders' Equity for the month ended June 30, 20Y9 shows that Common Stock increased to $220,000 after issuance of additional stock, and Retained Earnings increased to $1,696,000 after accounting for net income and dividends paid.

Step-by-step explanation:

To prepare a statement of stockholders' equity for Organic Products Company for the month ended June 30, 20Y9, we'll first list the beginning balances of common stock and retained earnings, add any increases, and then subtract any decreases during the period.

Statement of Stockholders' Equity

Common Stock, June 1, 20Y9: $150,000
Common Stock Issued in June: +$70,000
Total Common Stock, June 30, 20Y9: $220,000

Retained Earnings, June 1, 20Y9: $1,610,000
Net Income for June: +$112,000
Dividends Paid in June: -$26,000
Total Retained Earnings, June 30, 20Y9: $1,696,000

The statement of stockholders' equity shows the change in equity over a period of time. This includes common stock and retained earnings for the Organic Products Company.

Answer 2

As for the provided information, we have,

Statement of Stockholder's Equity

Date Common Stock Retained Earnings Total

1 June $150,000 $1,610,000 $1,760,000

Stock issued $70,000 $70,000

Net income $112,000 $112,000

Dividends ($26,000) ($26,000)

30 June $220,000 $1,696,000 $1,916,000

Note: Dividend is deducted from net income.

And net income is a part of retained earnings.