In: Accounting
Kingbird, Inc. compiled the following financial information as
of December 31, 2017:
Service revenue | $850000 |
Common stock | 191000 |
Equipment | 231000 |
Operating expenses | 749000 |
Cash | 206000 |
Dividends | 57000 |
Supplies | 32000 |
Accounts payable | 110000 |
Accounts receivable | 88000 |
Retained earnings, 1/1/17 | 441000 |
Kingbird stockholders’ equity on December 31, 2017 is:
$676000
$644000
$473000
$740000
Answer: $676000
Explanation
Net Income | |
Sales revenue | 850,000.00 |
Less:Operating expenses | 749,000.00 |
Net Income | 101,000.00 |
Ending Retained earnings | |
Beginning Retained earnings | 441,000.00 |
Add: Net Income | 101,000.00 |
Less: Dividend Paid | (57,000.00) |
Ending Retained earnings | 485,000.00 |
Calculation of Stockholders’ Equity on December 31, 2017 | |
$ | |
Ending Retained earnings | 485,000.00 |
Add: Common stock | 191,000.00 |
Stockholders’ Equity | 676,000.00 |