Question

Financial Statements

The following amounts were taken from the accounting records of Padget Home Services, Inc., as of December 31, 20Y7. Padget Home Services began its operations on January 1, 20Y7.

Cash		$ 60,000
Common stock		75,000
Dividends		15,000
Fees earned		620,000
Interest expense		4,800
Land		215,000
Miscellaneous expense		10,200
Notes payable		80,000
Rent expense		70,000
Salaries expense		272,000
Taxes expense		43,000
Utilities expense		85,000

2. Prepare a statement of stockholders’ equity for the year ending December 31, 20Y7. If your answer is zero enter "0".

Padget Home Services, Inc.
Statement of Stockholders’ Equity
For the Year Ending December 31, 20Y7
	Common Stock	Retained Earnings	Total
Balances, Jan. 1, 20Y7	$	$	$
Issued common stock
Net income
Dividends
Balances, Dec. 31, 20Y7	$	$	$

Answer 1

Padget Home Services, Inc.
Statement of Stockholders’ Equity
For the Year Ending December 31, 20Y7
	Common Stock	Retained Earnings	Total
Balances, Jan. 1, 20Y7	$75,000.00	$              -	$   75,000.00
Issued common stock
Net income		$1,35,000.00
Dividends		$ (15,000.00)
Balances, Dec. 31, 20Y7	$75,000.00	$1,20,000.00	$1,95,000.00

Working note

Income statement
Fees earned		$ 6,20,000.00
Less: expenses
Interest expense	$        4,800.00
Miscelannious expense	$      10,200.00
Rent expense	$      70,000.00
Salaries expense	$ 2,72,000.00
Taxes ex[pense	$      43,000.00
Utilities expense	$      85,000.00
Total expenses		$ 4,85,000.00
Net income		$ 1,35,000.00