Answered: Prepare the Stockholders' Equity…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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During Year 2, Copernicus Corporation held a portfolio of available-for-sale securities having a cost of $183,300. There were no purchases or sales of investments during the year. The market values at the beginning and end of the year were $216,300 and $174,100, respectively. The net income for Year 2 was $168,600, and no dividends were paid during the year. The Stockholders' Equity section of the balance sheet was as follows on December 31, Year 1:

Copernicus Corporation Stockholders' Equity December 31, Year 1
Common stock	$38,000
Paid-in capital in excess of par	290,000
Retained earnings	381,300
Unrealized gain on available-for-sale investments	33,000
	Total stockholders’ equity	$742,300

Prepare the Stockholders' Equity section of the balance sheet for December 31, Year 2.

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