Question

On December 31, 2016, the accounts of Leuz Architect Services showed credit balances in its Common Stock and Retained Earnings accounts of $60,000 and $30,000, respectively. The company's stock issuances for 2017 totaled $12,000, and it paid $10,000 cash dividends in 2017. During 2017, the company had net income of $33,000. What is the total stockholders' equity for Leuz Architect Services at December 31, 2017

Answer 1

The total stockholder's Equity at December 31, 2017 is $125,000

Step-by-step explanation:

December 31, 2016

Common Stock $60,000

Retained Earnings $30,000

Stockholder's Equity $90,000

Now, we add the $12,000 stock issuance to common stock, and substract the $10,000 dividend payment from retained earnings.

2017

Common Stock $72,000

Retained Earnings $20,000

Stockholder's Equity $92,000

Finally, we add the net income of $33,000 to retained earnings

December 31, 2017

Common Stock $72,000

Retained Earnings $53,000

Stockholder's Equity $125,000