Exercise 4-16 Sheridan Co. reports the following information for 2017: sales rev

ID: 2338860 • Letter: E

Question

Exercise 4-16

Sheridan Co. reports the following information for 2017: sales revenue $762,800, cost of goods sold $524,200, operating expenses $82,000, and an unrealized holding loss on available-for-sale securities for 2017 of $56,700. It declared and paid a cash dividend of $14,660 in 2017.

Sheridan Co. has January 1, 2017, balances in common stock $368,700; accumulated other comprehensive income $87,500; and retained earnings $95,830. It issued no stock during 2017.

Prepare a statement of stockholders’ equity.

Explanation / Answer

Answer

Working

Sales revenue

$ 762,800.00

Cost of Goods Sold

$ 524,200.00

Gross Profits

$ 238,600.00

Operating expense

$ 82,000.00

Net Income

$ 156,600.00

Statement of Stockholder's Equity as of Dec 31, 2017

Common Stock

Retained Earnings

Accumulated Other Comprehensive Income

Total Stockholder's Equity

Balance jan 1, 2017

$ 368,700.00

$ 95,830.00

$ 87,500.00

$ 552,030.00

Net Income

$ 156,600.00

Other comprehensive Income (Loss)

$ (56,700.00)

Dividends

$ (14,660.00)

Balance Dec 31, 2017

$ 368,700.00

$ 237,770.00

$ 30,800.00

$ 637,270.00