simplex corporation provides the following information at the end of the year:\nsalaries payable to workers…

simplex corporation provides the following information at the end of the year:\nsalaries payable to workers at the end of the year $3,500\nadvertising expense for the year 8,700\nbuilding that has been purchased 70,000\nsupplies at the end of the year 7,500\nretained earnings at the end of the year 38,000\nutilities expense for the year 4,200\nnote payable to the bank 21,500\nservice revenue during the year 67,800\nsalaries expense for the year 24,200\naccounts payable to suppliers 6,700\ndividends paid to stockholders during the year?\ncommon stock that has been issued, including $8,000 that was issued this year 39,000\ncash remaining 5,500\ninterest expense for the year 1,800\naccounts receivable from customers 16,700\nrequired:\nprepare the statement of stockholders’ equity for the year ended december 31. the balance of retained earnings at the beginning of the year equals $24,500

simplex corporation provides the following information at the end of the year:\nsalaries payable to workers at the end of the year $3,500\nadvertising expense for the year 8,700\nbuilding that has been purchased 70,000\nsupplies at the end of the year 7,500\nretained earnings at the end of the year 38,000\nutilities expense for the year 4,200\nnote payable to the bank 21,500\nservice revenue during the year 67,800\nsalaries expense for the year 24,200\naccounts payable to suppliers 6,700\ndividends paid to stockholders during the year?\ncommon stock that has been issued, including $8,000 that was issued this year 39,000\ncash remaining 5,500\ninterest expense for the year 1,800\naccounts receivable from customers 16,700\nrequired:\nprepare the statement of stockholders’ equity for the year ended december 31. the balance of retained earnings at the beginning of the year equals $24,500

Answer

Explanation:

Step1: Calculate net income

Net income = Service revenue - (Advertising expense + Utilities expense+ Salaries expense + Interest expense) Net income = $67,800-(8,700 + 4,200+67,800 + 1,800)$ Net income = $67,800 - 82,500=-$14,700

Step2: Prepare statement of stock - holders' equity

Common Stock Retained Earnings Total Stock - holders' Equity
Balance at January 1 $39,000 - 8,000=31,000$ $24,500$ $31,000 + 24,500 = 55,500$
Issuance of common stock $8,000$ $0$ $8,000$
Net income (loss) $0$ $- 14,700$ $-14,700$
Dividends $0$ Let's assume dividends $d$ (not given in data, if we assume $d = 0$ for simplicity) $0$
Balance at December 31 $39,000$ $24,500-14,700=9,800$ $39,000 + 9,800=48,800$

Answer:

Common Stock Retained Earnings Total Stock - holders' Equity
Balance at January 1 $31,000$ $24,500$ $55,500$
Issuance of common stock $8,000$ $0$ $8,000$
Net income (loss) $0$ $-14,700$ $-14,700$
Dividends $0$ $0$ $0$
Balance at December 31 $39,000$ $9,800$ $48,800$