contestada

C. Reither Co. reports the following information for 2020: sales revenue $700,000, cost of goods sold $500,000, operating expenses $80,000, and an unrealized holding loss on available-for-sale debt securities for 2020 of $60,000. It declared and paid a cash dividend of $10,000 in 2020. C. Reither Co. has January 1, 2020, balances in common stock $350,000; accumulated other comprehensive income $80,000; and retained earnings $90,000. It issued no stock during 2020. (Ignore income taxes.) Prepare a statement of stockholders’ equity.

Respuesta :

Answer:

Explanation:

The statement of stockholder's equity comprises common stock and retained earnings.

Before preparing the statement of stockholder's equity , first, we have to find out the net income which is shown below:

= Sales revenue - cost of goods sold - operating expenses

= $700,000 - $500,000 - $80,000

= $120,000

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

And, the ending balance of the common stock = Beginning balance of common stock + issued shares

The ending balance after adjustment shown in the attached spreadsheet.  

Ver imagen andromache

Otras preguntas