The stockholders' equity section of Five Voices Music, Inc.'s balance sheet at December 31, 2017, follows: Stockholders'

Question:

The stockholders' equity section of Five Voices Music, Inc.'s balance sheet at December 31, 2017, follows:

Stockholders' Equity

Common Stock - no par, 10,000 shares authorized, 1,000 shares issued and outstanding .......... $ 90,000

Retained Earnings ..................................................................................................................................... 360,000

Total Stockholders' Equity .......................................................................................................................$450,000

During 2018, Five Voices Music completed the following transactions:

• May 24: Issued 200 no-par common shares for cash amounting to $16,000.

• December 1: Implemented a 2-for-1 stock split.

• December 31: Announced net income of $50,000 for the year ended December 31, 2018.

Based on the information provided, prepare the stockholders' equity section for Five Voices Music at December 31, 2018.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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