Scott Lockhart owns and operates AAA Delivery Services. On January 1, 20Y7, Common Stock had a balance of $60,000, and Retained
Earnings had a balance of $825,500. During the year, no additional common stock was issued, and $13,000 of dividends were paid. For the year ended December 31, 20Y7, AAA Delivery reported a net income of $65,500. Prepare a statement of stockholders' equity for the year ended December 31, 20Y7.
1 answer:
Answer:
Explanation:
The stockholder's equity statement is composed of common stock and retained earnings. The ending balance shown in the attached spreadsheet, after modification.
The Ending balance of earnings retained = Starting balance of earnings retained + net income - dividend paid
And, Ending balance of common stock = Starting balance of common stock + issued stock
The preparation of the stockholders ' equity statement for the year ended December 31, 20Y7 is provided in the spreadsheet. The attachment below is:
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