Revise the following by incorporating bulleted items with category headings. Our attorney made a recommendation that we consider
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Answer:
Explanation:
The statement of stockholder's equity comprises common stock and retained earnings. The ending balance after adjustment shown in the attached spreadsheet.
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
And, the ending balance of the common stock = Beginning balance of common stock + issued shares
Before preparing the statement of stockholders’ equity we need to calculate the net income or net loss as the case may be. The computation is shown below:
Net income = Sales revenue - cost of goods sold - operating expenses
= $780,800 - $519,000 - $88,800
= $173,000
The preparation of the statement of stockholders’ equity is presented in the spreadsheet. Kindly find the attachment below:
