Question

Statement of Stockholders' Equity - One (1) question (This problem does NOT build on the preceding problem, the numbers in the Adjusted Trial Balance are different.)

Instructions: Please prepare a Statement of Stockholders' Equity on your scratch paper based on the following Adjusted Trial Balance and Additional Information below.

Question: What is the ending balance as of 12/31 for the Retained Earnings Account column as shown on the Statement of Stockholders’ Equity you prepared on your scratch paper?

Adjusted Trial Balance
As of 12/31/20xx
Accounts	Debit	Credit
Cash	$15,400
Prepaid Rent	5,300
Supplies	4,200
Building	8,200
Accumulated Depreciation		$4,519
Accounts Payable		1,100
Interest Payable		1,800
Common Stock		2,100
Retained Earnings		12,600
Dividends	2,519
Service Revenue		22,400
Rent Expense	900
Supplies Expense	3,000
Utility Expense	1,000
Depreciation Expense	4,000
Totals	$44,519	$44,519

Additional Information:

• Beginning Balance of Common Stock on 1/1/20xx  $2,100
• Beginning Balance of Retained Earnings on 1/1/20xx  $12,600
• No new stock issued during the accounting period.
• Hint: Please remember the formula for retained earnings when preparing this statement.

Fill in the blank with your calculated number. DO NOT include commas, $ signs, period, decimal points, etc., just enter the raw number. Webcourses will add commas to your answer automatically. For example, if you calculated the answer to be $24,123, you would only input: 24123

Answer 1

	Amount $
Ending Balance of Retained earnings	23,581
Statement of Stockholer's Equity
	Common Stock	Retained earnings	Total $
Beginning Balance	2,100	12,600	14,700
Net income (22400-900-3000-1000-4000)	-	13,500	13,500
Dividends	-	-2,519	-2,519
Ending Balance	2,100	23,581	25,681