Chapter 1, Problem 1.11E

At the beginning of 2018, Artichoke Academy reported a balance in common stock of $150,000 and a balance in retained earnings of $50,000. During the year, the company issued additional shares of stock for $40,000, earned net income of $30,000, and paid dividends of $10,000. In addition, the company reported balances for the following assets and liabilities on December 31.

Required:

  1.    Prepare a statement of stockholders’ equity.

  2.    Prepare a balance sheet.