C. Reither Co. reports the following information for 2014: sales revenue $700,000; cost of goods sold $500,000; operating expenses $80,000; and an unrealized holding loss on available-for-sale securities for 2014 of $60,000. It declared and paid a cash dividend of $10,000 in 2014. C. Reither Co. has January 1, 2014, balances in common stock $350,000; accumulated other comprehensive income $80,000; and retained earnings $90,000. It issued no stock during 2014. Prepare a statement of stockholders' equity.

Question

Business

Arely Lowery

3 January, 08:03

C. Reither Co. reports the following information for 2014: sales revenue $700,000; cost of goods sold $500,000; operating expenses $80,000; and an unrealized holding loss on available-for-sale securities for 2014 of $60,000. It declared and paid a cash dividend of $10,000 in 2014. C. Reither Co. has January 1, 2014, balances in common stock $350,000; accumulated other comprehensive income $80,000; and retained earnings $90,000. It issued no stock during 2014. Prepare a statement of stockholders' equity.

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Makhi Mills · Answer 1

Statement of Share holder equity is given below

Balance on January 01, 2014

Equity / Common stock 350000

Retained Earning 90000

Accumulated other comprehensive 80000

income

unrealized holding loss on 60000

available-for-sale securities for 2014

Sales Revenue 700000

Cost of goods sold 500000

Operating Expense 80000

Net income = Sales Revenue - Cost of goods sold - Operating Expense

Net income = 700000 - 500000 - 80000 = 120,000

Comprehensive income = Net income - unrealized holding loss on available-for-sale securities for 2014

Comprehensive income = 120000 - 60000 = 60000

Shareholder equity

Equity / Common stock 350000

Retained Earning 90000

Comprehensive income 60000

Accumulated other comprehensive income 80000

Total Shareholders equity 580,000