At the beginning of 2024, Norton Academy reported a balance in common stock of $168,000 and a balance in retained earnings of $68,000. During the year, the company issued additional shares of stock for $58,000, earned net income of $48,000, and paid dividends of $11,800. In addition, the company reported balances for the following assets and liabilities on December 31. Assets Liabilities Cash $54,400 Accounts payable $15,600 Supplies 12,700 Utilities payable 6,000 Prepaid rent 33,000 Salaries payable 5,300 Land 290,000 Notes payable 33,000 Required: Prepare a statement of stockholders’ equity.
At the beginning of 2024, Norton Academy reported a balance in common stock of $168,000 and a balance in retained earnings of $68,000. During the year, the company issued additional shares of stock for $58,000, earned net income of $48,000, and paid dividends of $11,800. In addition, the company reported balances for the following assets and liabilities on December 31. Assets Liabilities Cash $54,400 Accounts payable $15,600 Supplies 12,700 Utilities payable 6,000 Prepaid rent 33,000 Salaries payable 5,300 Land 290,000 Notes payable 33,000 Required: Prepare a statement of stockholders’ equity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
At the beginning of 2024, Norton Academy reported a balance in common stock of $168,000 and a balance in
| Assets | Liabilities | ||
|---|---|---|---|
| Cash | $54,400 | Accounts payable | $15,600 |
| Supplies | 12,700 | Utilities payable | 6,000 |
| Prepaid rent | 33,000 | Salaries payable | 5,300 |
| Land | 290,000 | Notes payable | 33,000 |
Required:
- Prepare a statement of
stockholders’ equity.
Transcribed Image Text:Stmt of
Stockholders Balance Sheet
Equity
Prepare a statement of stockholders' equity.
NORTON ACADEMY
Statement of Stockholders' Equity
For the Year Ended December 31, 2024
Total
Common
Stock
Retained
Stockholders'
Earnings
Equity
Beginning Balance
$
168,000 $
68,000 $
259,000
Issuance of Common Stock
Add: Net income
Less: Dividends
Ending Balance
$
168,000
68,000
259,000
Stmt of Stockholders Equity
Balance Sheet
>
Expert Solution
Introduction :
Common Stock :
Ending balance = Beginning balance + Issuance of common stock
Retained earnings :
Ending balance = Beginning balance + Net Income - Dividends
Total Stockholders equity = Common Stock + Retained earnings
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