The following is a list of accounts, in alphabetical order, for Sandhill, Inc. a
ID: 2341258 • Letter: T
Question
The following is a list of accounts, in alphabetical order, for Sandhill, Inc. at July 31, 2018:
Additional information:
All accounts have a normal balance. During the year, the company issued common shares for $ 11,000.
Prepare a statement of changes in equity for the year. (If an amount reduces the account balance then enter with negative sign or parentheses e.g. (45) or –45.)
Explanation / Answer
Answer
SANDHILL INC.
Statement of Changes in Equity
Year Ended July 31, 2018
Common
Retained
Total
Shares
Earnings
Equity
Balance August 1, 2017
$ 26,000.00
$ 20,800.00
$ 46,800.00
Issued Common Shares
$ 11,000.00
$ -
$ 11,000.00
Net Income/(Loss)
$ -
$ 22,700.00 [calculated below]
$ 22,700.00
Dividends Declared
$ -
$ (800.00)
$ (800.00)
Balance, July 31, 2018
$ 37,000.00
$ 42,700.00
$ 79,700.00
Service revenue
$ 75,900.00
Expenses:
Income tax expense
$ 2,900.00
Insurance expense
$ 1,700.00
Interest expense
$ 3,600.00
Rent expense
$ 9,100.00
Repairs and maintenance expense
$ 10,400.00
Salaries expense
$ 25,500.00
Total Expenses
$ 53,200.00
Net Income
$ 22,700.00
SANDHILL INC.
Statement of Changes in Equity
Year Ended July 31, 2018
Common
Retained
Total
Shares
Earnings
Equity
Balance August 1, 2017
$ 26,000.00
$ 20,800.00
$ 46,800.00
Issued Common Shares
$ 11,000.00
$ -
$ 11,000.00
Net Income/(Loss)
$ -
$ 22,700.00 [calculated below]
$ 22,700.00
Dividends Declared
$ -
$ (800.00)
$ (800.00)
Balance, July 31, 2018
$ 37,000.00
$ 42,700.00
$ 79,700.00
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