Exercise 11-14 Reporting Changes in Stockholders\' Equity Items Exercise 11-14 R

Question

Exercise 11-14 Reporting Changes in Stockholders' Equity Items

Exercise 11-14 Reporting Changes in Stockholders Equity Items On May 1, 2011, Ryde Inc. had common stock of $345,000, additional paid-in capital of $1,298,000, and retained earnings of $3,013,000. Ryde did not purchase or sell any common stock during the year. The company reported net income of $556,000 and declared dividends in the amount of $78,000 during the year ended April 30, 2012. Required Prepare a financial statement that explains the differences between the beginning and ending balances fix the accounts in the Stockholders' Equity category of the balance sheet.

Explanation / Answer

The total stockholder equity is the sum of common stock, additional paid up capital and retained earnings. The net income will be added in retained earnings and the dividend will be subtracted from retained earnings.

Following is the statement of stockholder's equity:

Ryde Inc. Statement of Stockholder's equity For the year ended April 30, 2012 Common Stock Additional paid-in capital Retained earnings Total Stock holders' Equity Balance on May 1, 2011 $345,000 $1,298,000 $3,013,000 $4,656,000 Net Income $556,000 $556,000 Dividends ($78,000) ($78,000) Balance on April 30, 2012 $345,000 $1,298,000 $3,491,000 $5,134,000

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.