Exercise 1-6 (Algo) Prepare an income statement (LO1-3) At the beginning of the year (January 1), Wildfire Drilling has $10,000 of common stock outstanding and retained earnings of $6,400. During the year, Wildfire reports net income of $6,700 and pays dividends of $1,400. In addition, Wildfire issues additional common stock for $6,200. Required: Prepare the statement of stockholders' equity at the end of the year (December 31). Beginning balance Issuance of common stock Add Not income Ending balance WILDFIRE DRILLING Statement of Stockholders' Equity For the Year Ended December 31 Common Stock $ S 10,000 6,700 6,200 Retained Earnings 22,900 $ Total Stockholders' Equity 0$ 1,400 1,400 4
Exercise 1-6 (Algo) Prepare an income statement (LO1-3) At the beginning of the year (January 1), Wildfire Drilling has $10,000 of common stock outstanding and retained earnings of $6,400. During the year, Wildfire reports net income of $6,700 and pays dividends of $1,400. In addition, Wildfire issues additional common stock for $6,200. Required: Prepare the statement of stockholders' equity at the end of the year (December 31). Beginning balance Issuance of common stock Add Not income Ending balance WILDFIRE DRILLING Statement of Stockholders' Equity For the Year Ended December 31 Common Stock $ S 10,000 6,700 6,200 Retained Earnings 22,900 $ Total Stockholders' Equity 0$ 1,400 1,400 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 1-6 (Algo) Prepare an income statement (LO1-3)
At the beginning of the year (January 1), Wildfire Drilling has $10,000 of common stock outstanding and retained earnings of $6,400.
During the year, Wildfire reports net income of $6,700 and pays dividends of $1,400. In addition, Wildfire issues additional common
stock for $6,200.
Required:
Prepare the statement of stockholders' equity at the end of the year (December 31).
Beginning balance
Issuance of common stock
Add Not income
Ending balance
WILDFIRE DRILLING
Statement of Stockholders' Equity
For the Year Ended December 31
Common
Stock
$
S
10,000
6,700
6,200
Retained
Earnings
22,900 $
Total
Stockholders'
Equity
0$
1,400
1,400
4
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