Question
In: Accounting
Statement of Stockholders’ Equity The Statement of Stockholders’ Equity is also referred to as investment or...
Statement of Stockholders’ Equity
The Statement of Stockholders’ Equity is also referred to as investment or net worth. It is a financial statement in annual reports to stockholders which shows the amount of paid-in capital and retained earnings and the changes therein since the preceding report.
Solve the following three exercises and please show all of your calculations.
Exercise 1
Retained earnings 1/1/2017 $200,000
Net income for 2017 $540,000
Dividends declared 2017 $120,000
What is the amount of retained earnings at 12/31/2017
Answer:
Exercise 2
Retained earnings 12/31/2017 $960,000
Dividends declared 2017 $140,000
Net income for 2017 $650,000
What is the amount of retained earnings at January 1, 20×1?
Answer:
Exercise 3
JAN Corporation had a net income of $166,600; beginning equity was $1.2m. Additional shares of common stock were issued for $15,000. A $33,000 cash dividend was declared and paid. What is the balance of the stockholder’s equity at year end. Present your answer in statement format.
Answer:
Solutions
Expert Solution
|
EXERCISE 1 AMOUNT OF RETAINED EARNINGS FOR 31.12.2017 |
|||||||
| RETAINED EARNINGS 01.01.2017 | 2,00,000.00 | ||||||
| ADD: NET INCOME FOR THE YEAR | 5,40,000.00 | ||||||
| LESS:DIVIDEND PAID | -1,20,000.00 | ||||||
| 6,20,000.00 | |||||||
| EXERCISE 2 | |||||||
| AMOUNT OF REATINED EARNINGS FOR 01.01.2017 | |||||||
| RETAINED EARNINGS 31.12.2017 | 9,60,000.00 | ||||||
| ADD:DIVIDEND PAID | 1,40,000.00 | ||||||
| LESS: NET INCOME FOR THE YEAR | -6,50,000.00 | ||||||
| 4,50,000.00 | |||||||
|
EXERCISE 3 |
|||||||
| COMMON STOCK | RETAINED EARNINGS | ||||||
| BALANCE ON JANUARY 1 | 12,00,000.00 | - | |||||
| ISSUED SHARES FOR CASH | 15,000.00 | - | |||||
| NET INCOME | - | 1,66,600.00 | |||||
| CASH DIVIDENDS | - | -33,000.00 | |||||
| BALANCE ON DECEMBER 31 | 12,15,000.00 | 1,33,600.00 | |||||
| STAKEHOLDER'S EQUITY AT YEAR END = COMMON STOCK+ RETAINED EARNINGS | |||||||
| 13,48,600.00 | |||||||
ekkarill92 answered 2 years agoRelated Solutions
What is a statement of stockholders' equity?
What is a statement of stockholders' equity?It is a statement that reconciles only the treasury stock
account.It is a statement reconciling the difference between stock
issued at par value and stock issued at market value.It is a statement that summarizes changes in the entire
stockholders' equity section of the balance sheet.It is the same as a retained earnings statement
Identify the major components of stockholders’ equity by examining the Statement of Stockholders’ Equity. What types...
Identify the major components of stockholders’ equity by
examining the Statement of Stockholders’ Equity. What types of
transactions resulted in significant changes in the Stockholder
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dividend payments to stockholders during the most recent year?
For the Company UPS. Using information from UPS website/yahoo
finance
The following information is from 2019 statement of stockholders' equity for Katy Inc. Stockholders' equity (in...
The following information is from 2019 statement of
stockholders' equity for Katy Inc.
Stockholders' equity (in millions, except shares)
2016
2015
Series A 5.375% mandatory convertible preferred stock
$ 400
$ 400
Common stock, par value $0.01 (128,626,740 shares issued
2019; 128,228,477 shares issued 2018)
1
1
Additional paid-in capital
3,547
3,187
Accumulated other comprehensive income, net of tax
21
19
Accumulated deficit
(1,927
)
(686
)
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2,042
2,921
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(3
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(2
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Total...
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Comment on this statement and also give your advice best investment
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(Create an investment portfolio to
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Note : Answers should be in
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Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January...
Stockholders' Equity: Transactions and
Statement
The stockholders' equity section of Night Corporation's balance
sheet at January 1 follows:
Common stock, $10 par value, 300,000 shares authorized, 60,000
shares
600,000
issued, 6,000 shares in treasury
Additional paid-in capital
In excess of par value
960,000
From treasury stock
60,000
1,020,000
Retained earnings
696,000
2,316,000
Less: Treasury stock (6,000 shares) at cost
276,000
Total Stockholders’ Equity
2,040,000
The following transactions affecting stockholders’ equity
occurred during the year:
Jan.
8
Issued 15,000 shares of...
Stockholders’ Equity: Transactions and Statement The stockholders’ equity section of Night Corporation’s balance sheet at January...
Stockholders’ Equity: Transactions and
Statement
The stockholders’ equity section of Night Corporation’s balance
sheet at January 1 follows:
Common stock, $5 par value, 300,000 shares authorized, 60,000
shares
$300,000
issued, 6,000 shares in treasury
Additional paid-in capital
In excess of par value
$480,000
From treasury stock
30,000
510,000
Retained earnings
348,000
1,158,000
Less: Treasury stock (6,000 shares) at cost
138,000
Total Stockholders’ Equity
$1,020,000
The following transactions affecting stockholders’ equity
occurred during the year:
Jan.
8
Issued 15,000 shares of...
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January...
Stockholders' Equity: Transactions and
Statement
The stockholders' equity section of Night Corporation's balance
sheet at January 1 follows:
Common stock, $8 par value, 300,000 shares authorized, 60,000
shares
480,000
issued, 6,000 shares in treasury
Additional paid-in capital
In excess of par value
720,000
From treasury stock
45,000
765,000
Retained earnings
522,000
1,767,000
Less: Treasury stock (6,000 shares) at cost
207,000
Total Stockholders’ Equity
1,560,000
The following transactions affecting stockholders’ equity
occurred during the year:
Jan.
8
Issued 15,000 shares of...
Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the fiscal year...
Statement of Stockholders' Equity
The stockholders’ equity T accounts of I-Cards Inc. for the
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Jan. 1
Balance
900,000
Apr. 14
Issued
9,600 shares
384,000
Dec. 31
Balance
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PAID-IN CAPITAL IN EXCESS OF PAR
Jan. 1
Balance
144,000
Apr. 14
Issued
9,600 shares
76,800
Dec. 31
Balance
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Aug. 7
Purchased
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59,200
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Mar. 31
Dividend
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Jan. 1
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June. 30
Dividend...
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Problem 10-5A Understand stockholders' equity and the statement of stockholders' equity (LO10-7) [The following information applies...
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of stockholders' equity (LO10-7)
[The following information applies to the questions
displayed below.]
Donnie Hilfiger has two classes of stock authorized: $1 par
preferred and $0.01 par value common. As of the beginning of 2018,
300 shares of preferred stock and 2,400 shares of common stock have
been issued. The following transactions affect stockholders’ equity
during 2018:
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share.
May 15 Purchase...
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