2. Prepare a statement of stockholders' equity for the year.HIGHLIGHT CONSTRUCTION COMPANYStatement of Stockholders' EquityFor the Year Ended December 31, Current YearBalance January 1, Current yearStock issuanceBalance December 31, Current year4CommonStockRetainedEarnings Required information[The following information applies to the questions displayed below.]Assume that you are the president of Highlight Construction Company. At the end of the first year of operations(December 31), the following financial data for the company are available:CashReceivables from customers (all considered collectible)Inventory of merchandise (based on physical count and priced at cost)Equipment owned, at cost less used portionAccounts payable owed to suppliersSalary payable (on December 31, this was owed to an employee who will be paid on January 10)Total sales revenueExpenses, including the cost of the merchandise sold (excluding income taxes)Income tax expense at 30% x pretax income; all paid during the current yearCommon stock (December 31)Dividends declared and paid during the current year(Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year ofoperations.)$ 25,60010,80081,00042,00046,1402,520128,40080,20087,00010,000

To solve the above question we need to prepare Income Statement to find out net income earned or…

Answered: 2. Prepare a statement of stockholders'…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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At September 30, the end of Beijing Company's third quarter, the following stockholders' equity accounts are reported. Common stock, $12 par value Paid-in capital in excess of par value, common stock Retained earnings In the fourth quarter, the following entries related to its equity are recorded. Date October 2 October 25 October 31 November 5 December 1 ecember 31 Retained Earnings Common Dividend Payable General Journal Common Dividend Payable Cash Retained Earnings Common Stock Dividend Distributable Paid-In Capital in Excess of Par Value, Common Stock Common Stock Dividend Distributable Common Stock, $12 Par Value Memo-Change the title of the common stock account to reflect the new par value of $4. Income Summary Retained Earnings Common stock Common stock dividend distributable Paid-in capital in excess of par, common stock Retained earnings Total equity September 30 Beginning Balance 360,000 0 90,000 320,000 770,000 $360,000 90,000 320,000 $ Required: 2. Complete the following…
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2. Prepare a statement of stockholders' equity for the year HIGHLIGHT CONSTRUCTION COMPANY Statement of Stockholders' Equity For the Year Ended December 31, Current Year Balance January 1, Current year Stock issuance Balance December 31, Current year Common Stock Retaine Earnin