The following items are taken from the financial statements of the Bonita Service for the year ending December 31, 2018: Accounts payable $ 17700 Accounts receivable 10700 Accumulated depreciation - equipment 28000 Advertising expense 21300 Cash 15100 Common stock 41300 Dividends 14200 Depreciation expense 12200 Insurance expense 2900 Note payable, due 6/30/19 70700 Prepaid insurance (12-month policy) 5800 Rent expense 17200 Retained earnings (1/1/18) 57500 Salaries and wages expense 31400 Service revenue 135700 Supplies 4000 Supplies expense 6100 Equipment 210000 What is the amount that would be reported for stockholders' equity at December 31, 2018?

Question

Business

Melany Stanton

25 November, 11:49

The following items are taken from the financial statements of the Bonita Service for the year ending December 31, 2018: Accounts payable $ 17700 Accounts receivable 10700 Accumulated depreciation - equipment 28000 Advertising expense 21300 Cash 15100 Common stock 41300 Dividends 14200 Depreciation expense 12200 Insurance expense 2900 Note payable, due 6/30/19 70700 Prepaid insurance (12-month policy) 5800 Rent expense 17200 Retained earnings (1/1/18) 57500 Salaries and wages expense 31400 Service revenue 135700 Supplies 4000 Supplies expense 6100 Equipment 210000 What is the amount that would be reported for stockholders' equity at December 31, 2018?

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Answers (1)

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Caylee Abbott · Answer 1

The correct answer is: "129.200

Explanation:

Firstly, you have to prepare the income statement to know what the net income (loss) is. Services Revenue 135,700 less expenses (31,400 + 21.300 + 12.200+2900 + 17.200+6100) Net income = 44.600. Then sum Net income + common stocks + Retained Earnings - Dividends (44,600 + 41.300+57.500-14.200)