Please provide an explanation for how to solve Stockholder\'s Equity and Retaine
ID: 2437175 • Letter: P
Question
Please provide an explanation for how to solve Stockholder's Equity and Retained Earnings columns below with calculations.
M4-9 Reporting a Statement of Stockholders Equity LO4-2
Romney's Marketing Company has the following adjusted trial balance at the end of the current year. No dividends were declared. However, 590 shares ($0.10 par value per share) issued at the end of the year for $2,800 are included below:
Prepare a statement of stockholders' equity in good form for the current year.
Debit Credit Cash $ 1,530 Accounts receivable 2,300 Interest receivable 290 Prepaid insurance 1,620 Notes receivable (long-term) 2,830 Equipment 17,000 Accumulated depreciation $ 2,820 Accounts payable 2,350 Accrued expenses payable 3,770 Income taxes payable 2,660 Unearned rent revenue 460 Common Stock (800 shares) 80 Additional paid-in capital 3,580 Retained earnings 6,170 Sales revenue 37,050 Interest revenue 170 Rent revenue 670 Wages expense 18,600 Depreciation expense 1,770 Utilities expense 410 Insurance expense 710 Rent expense 10,000 Income tax expense 2,720 Total $ 59,780 $ 59,780 M4-9 Reporting a Statement of Stockholders Equity LO4-2 Romney's Marketing Company has the following adjusted trial balance at the end of the current year. No dividends were declared. However, 590 shares ($0.10 par value per share) issued at the end of the year for $2,800 are included below: Debit Credit S 1,530 Accounts receivable Interest receivable Prepald insurance Notes receivable long-term) Equipment Accumulated depreciation Acccunts payable Accrued expenses payable Income taxes payable Unearned rent revenue Common Stock (800 shares) Additional paid-n capital Retained eamings Sales revenue Interest revenue Rent revenue Wages expense Depreciation expense Utilities expense Insurance expense Rent expense Income tax expense 17,000 S 2,820 2,680 6,170 37,050 8,800 1,770 10,000 Prepare a statement of stockholders' equity in good form for the current year. ROMNEY'S MARKETING COMPANY Statement of Stockholders' Equity For the current year Total Common Additional StockPaid-in CapitalEarnings Equity Balance, January 1 83B Share issuanos 50 2,741 Net income 3,680 Balanca, December 31 Bat s 3,580Explanation / Answer
$21
[800 shares - 590 shares] x $0.10
$839
[$3,580 - $2,741]
(Balancing figure)
Share issuance
(During the year]
$59
590 shares x $0.10]
$2,741
[$2,800 - $59]
(In excess of Par value)
$3,680
** Additional paid in capital means capital received in excess of Par value of the common stock
Calculation of Net profit:
ROMNEY'S MARKETING COMPANY Statement of Stockholders Equity For the current Year Common Stock Additional Paid In Capital Retainded earnings Total Stockholders equity Opening balance, Jan1$21
[800 shares - 590 shares] x $0.10
$839
[$3,580 - $2,741]
(Balancing figure)
$6,170 $7,030Share issuance
(During the year]
$59
590 shares x $0.10]
$2,741
[$2,800 - $59]
(In excess of Par value)
Net Income$3,680
Balance , December 31 $80 $3,580 $9,850 $13,510Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.