As of December 31, 2013, Blue Hen Company had total assets of $100,000, total liabilities of $30,000,

Question:

As of December 31, 2013, Blue Hen Company had total assets of $100,000, total liabilities of $30,000, and of $50,000.

Required
a. Determine the amount of retained earnings as of December 31, 2013, after closing.
b. Explain the difference between and retained earnings.
c. On January 1, 2014, Blue Hen raised $40,000 by issuing additional . Immediately after the additional capital was raised, Blue Hen reported total equity of $110,000. Are the stockholders of Blue Hen in a better financial position than they were on December 31, 2013?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...