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31 March, 23:59

At the beginning of the year (January 1), a company has $10,000 of common stock outstanding and retained earnings of $7,200. During the year, the company reports net income of $7,500 and pays dividends of $2,200. In addition, the company issues additional common stock for $7,000.

Required: Prepare the statement of stockholder's equity at the end of the year (December 31)

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  1. 1 April, 02:57
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    The preparation of the statement of stockholder's equity at the end of the year (December 31) is presented below:

    Statement of stockholder's equity

    Particulars Common stock Retained earnings Total stockholder

    Equity

    Beginning

    balance $10,000 $7,200 $17,200

    Add: Additional

    common stock $7,000 $7,000

    Add: Net income $7,500 $7,500

    Less - dividend - $2,200 - $2,200

    Ending balance $17,000 $12,500 $29,500
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