Question

At the beginning of 2021, Artichoke Academy reported a balance in common stock of $153,000 and a balance in retained earnings of $53,000. During the year, the company issued additional shares of stock for $43,000, earned net income of $33,000, and paid dividends of $10,300. In addition, the company reported balances for the following assets and liabilities on December 31. Assets Liabilities Cash $ 52,900 Accounts payable $ 8,100 Supplies 11,200 Utilities payable 3,000 Prepaid rent 25,500 Salaries payable 3,800 Land 215,000 Notes payable 18,000 Required: Prepare a statement of stockholders’ equity. Prepare a balance sheet.

Answer 1

STOCKHOLDERS EQUITY

Common Retained Stockholders

stock earnings equity

Beginning balance January 1 153.000 53.000 206.000

Issuance of common stock 43.000 43.000

Net income for the period 33.000 33.000

Cash Dividens (10.300) (10.300)

Ending balances December 31 196.000 75.700 271.700

BALANCE SHEET

Cash 52.900

Supplies 11.200

Prepaid Rent 25.500

Land 215.000

Total Assets 304.600

Account payable 8.100

Utilities payable 3.000

Salaries payable 3.800

Notes payable 18.000

Total liabilities 32.900

Common stock 196.000

Retained earnigs 75.700

Total stockholders 271.700

Liablities and

Stockholders 304.600

Step-by-step explanation:

STOCKHOLDERS EQUITY

Common Retained Stockholders

stock earnings equity

Beginning balance January 1 153.000 53.000 206.000

Issuance of common stock 43.000 43.000

Net income for the period 33.000 33.000

Cash Dividens (10.300) (10.300)

Ending balances December 31 196.000 75.700 271.700

BALANCE SHEET

Cash 52.900

Supplies 11.200

Prepaid Rent 25.500

Land 215.000

Total Assets 304.600

Account payable 8.100

Utilities payable 3.000

Salaries payable 3.800

Notes payable 18.000

Total liabilities 32.900

Common stock 196.000

Retained earnigs 75.700

Total stockholders 271.700

Liablities and

Stockholders 304.600