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15 September, 12:30

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.

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  1. 15 September, 13:08
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    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

    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
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