As of December 31, 2014, Blue Haven Company had total assets of $100,000, total liabilities of $30,000,

Question:

As of December 31, 2014, Blue Haven Company had total assets of $100,000, total liabilities of $30,000, and of $50,000. The company’s 2014 income statement contained revenue of $16,000 and expenses of $11,000. The 2014 statement of changes in stockholder’s equity stated that $2,000 of dividends were paid to investors.

Required
a. Determine the before-closing balance in the Retained Earnings account on December 31, 2014.
b. Determine the after-closing balance in the Retained Earnings account on December 31, 2014.
c. Determine the before-closing balances in the Revenue, Expense, and accounts on December 31, 2014.
d. Determine the after-closing balances in the Revenue, Expense, and accounts on December 31, 2014.
e. Explain the difference between and retained earnings.
f. On January 1, 2015, Blue Haven Company raised $40,000 by issuing additional . Immediately after the additional capital was raised. Blue Haven reported total equity of $110,000. Are the stockholders of Blue Haven in a better financial position than they were on December 31, 2014?

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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...