Question

The following account balances appear in the 2018 adjusted trial balance of Spiders Corporation: Common Stock, $21,000; Retained Earnings, $7,100; Dividends, $1,000; Service Revenue, $25,300; Salaries Expense, $15,100; and Rent Expense, $8,100. No common stock was issued during the year. Prepare the statement of stockholders' equity for the year ended December 31, 2018.

Answer 1

Spiders Corporation

statement of stockholders' equity

for the year ended 31th December 2018

Common Stock Retained Earings Total

Balance Jan 1 21,000 7,100 28,100

Net Earnings 2,100 2,100

Dividends -1,000 -1,000

Balance, Dec 31 21,000 8,200 29,200

Step-by-step explanation:

To know the retained earnings we will need to calculate the net income. which is revenues less expenses.

Service Revenue, 25,300

Salaries Expense, (15,100)

Rent Expense (8,100)

net income 2,100

Then we will subtract the dividends of 1,000