tb ex qu. 1-230 (algo) at the beginning of 2027, a company reported a balance. at the beginning of 2027, a…

tb ex qu. 1-230 (algo) at the beginning of 2027, a company reported a balance. at the beginning of 2027, a company reported a balance in common stock of $157,000 and a balance in retained earnings of $57,000. during the year, the company issued additional shares of stock for $47,000, earned net income of $37,000, and paid dividends of $10,700. in addition, the company reported balances for the following assets and liabilities on december 31. assets: cash $53,300, supplies $11,600, prepaid rent $27,500, land $235,000. liabilities: accounts payable $19,100, utilities payable $3,800, salaries payable $4,200, notes payable $22,000. required: 1. prepare a statement of stockholders equity for the year ended december 31, 2027. 2. prepare a balance sheet on december 31, 2027. complete this question by entering your answers in the tabs below.

tb ex qu. 1-230 (algo) at the beginning of 2027, a company reported a balance. at the beginning of 2027, a company reported a balance in common stock of $157,000 and a balance in retained earnings of $57,000. during the year, the company issued additional shares of stock for $47,000, earned net income of $37,000, and paid dividends of $10,700. in addition, the company reported balances for the following assets and liabilities on december 31. assets: cash $53,300, supplies $11,600, prepaid rent $27,500, land $235,000. liabilities: accounts payable $19,100, utilities payable $3,800, salaries payable $4,200, notes payable $22,000. required: 1. prepare a statement of stockholders equity for the year ended december 31, 2027. 2. prepare a balance sheet on december 31, 2027. complete this question by entering your answers in the tabs below.

Answer

Explanation:

Step1: Recall accounting - equation

Stockholders' equity = Assets - Liabilities. First, calculate total assets. Total assets = Cash + Supplies+ Prepaid rent + Land Total assets = $53,300 + 11,600+27,500 + 235,000=$327,400

Step2: Calculate total liabilities

Total liabilities = Accounts payable+ Utilities payable + Salaries payable+ Notes payable Total liabilities = $10,100+3,800 + 4,200+22,000=$40,100

Step3: Calculate ending stockholders' equity

Stockholders' equity = Assets - Liabilities Stockholders' equity = $327,400 - 40,100=$287,300 We can also calculate it using the following components - based approach. Beginning common - stock = $157,000 Beginning retained earnings = $57,000 Issued additional shares = $47,000 Net income = $37,000 Dividends = $10,700 Ending stockholders' equity=(Beginning common - stock+ Issued additional shares)+(Beginning retained earnings + Net income - Dividends) =(157,000 + 47,000)+(57,000+37,000 - 10,700) =204,000+(93,300) =$287,300

Answer:

$287,300