Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Statement of Stockholders' Equity-two (2) questions - This problem does NOT build on the preceding problem, the numbers in the Unadjusted Trial Balance are different.

image text in transcribed
image text in transcribed
Statement of Stockholders' Equity-two (2) questions - This problem does NOT build on the preceding problem, the numbers in the Unadjusted Trial Balance are different. Instructions:Please prepare a Statement of Stockholders' Equity on your scratch paper based on the following Unadjusted Trial Balance and Additional Information below to answer this question and the next question. You will need to know the ending balance for the retained earnings account and the common stock account. Unadjusted Trial Balance As of 12/31/20xx Accounts Debit Credit Cash $10,164 Prepaid Rent 6,000 Supplies 4,000 Building 15,000 Accounts Payable $2,000 Deferred Revenue 10,000 Common Stock 6,000 Retained Earnings 12,000 Revenue 10,164 Rent Expense 1,000 Salaries Expense 3,000 Insurance Expense 1,000 Totals $40,164 $40,164 As of 12/31/20xx Accounts Debit Credit Cash $10,164 Prepaid Rent 6,000 Supplies 4,000 Building 15,000 Accounts Payable $2,000 Deferred Revenue 10,000 Common Stock 6,000 Retained Earnings 12,000 Revenue 10,164 Rent Expense 1,000 Salaries Expense 3,000 Insurance Expense 1,000 Totals $40,164 $40,164 Additional Information: . Beginning Balance of Common Stock on 1/1/20xx $6,000 Beginning Balance of Retained Earnings on 1/1/20xx $12.000 No new stock or dividends paid during the accounting period. Hint: Please remember the formula for retained earnings when preparing this statement Question: What is the ending balance as of 12/31 for the Retained Earnings Account column as shown on the Statement of Stockholders' Equity you prepared on your scratch paper

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions