$160,000
Ending contribution capital = Beginning contributed capital + additional stock issued
Ending contributed capital = 84,000 + 22,000 = 106,000
Ending retained earnings = Beginning retained earnings + net income - dividends
Ending retained earnings = 36,000 + 24,000 - 6,000 = 54,000
Total equity = contributed capital + retained earnings
Total equity = 106,000 + 54,000 = 160,000
$160,000
Ending retained earnings = Beginning retained earnings + net income - dividends.
Ending retained earnings = $14,000 (debit balance) + $33,000 (i.e., credit Retained Earnings because of net income) - 5,000 (i.e., debit Retained Earnings because of dividends) = $14,000 (i.e., the $15,000 ending balance in Retained Earnings account is a credit balance).
Ending common stock = beginning common stock + additional common stock issued
Ending common stock = $109,000 + 37,000 = $146,000
Ending stockholders' equity = ending common stock + ending retained earnings.
Ending stockholders' equity = $146,000 + $14,000 = $160,000
A company has the following accounts and account balances at the end of its first year:
Accounts payable, $1,000
Cash, $15,000
Common stock, Not given
Dividends, $2,000
Expenses, $15,000
Notes payable, $4,000
Prepaid insurance, $2,000
Revenues, $20,000
What is
the balance of its common stock account at the end of the first year?
$9,000
assets = liabilities + equity
Assets = Liabilities + Common stock + Retained earnings
Wilson's assets include cash and prepaid insurance (i.e., 15,000 + 2,000 = 17,000).
Wilson's liabilities include accounts payable and notes payable (i.e., 1,000 + 4,000 = 5,000).
Wilson's retained earnings at the end of the first year equals retained earnings at the start of the current year plus current-year net income minus current year dividends (i.e., 0 + 20,000 - 15,000 - 2,000 = 3,000).
Common stock = Assets - liabilities - retained earnings
Common stock = 17,000 - 5,000 - 3,000
Common stock = 9,000
A company has the following accounts and account balances at the end of its first year:
Accounts payable, $3,000
Cash, $15,000
Common stock, Not given
Dividends, $1,000
Expenses,
$14,000
Notes payable, $4,000
Prepaid insurance, $3,000
Revenues, $23,000
What is the balance of its common stock account at the end of the first year?
$3,000
assets = liabilities + equity
Assets = Liabilities + Common stock + Retained earnings
Wilson's assets include cash and prepaid insurance (i.e., 15,000 + 3,000 = 18,000).
Wilson's liabilities include accounts payable and notes payable (i.e., 3,000 + 4,000 = 7,000).
Wilson's retained earnings at the end of the first year equals retained earnings at the start of the current year plus current-year net income minus current year dividends (i.e., 0 + 23,000 - 14,000 - 1,000 = 8,000).
Assets = liabilities + retained earnings + common stock
Common stock = Assets - liabilities - retained earnings
Common stock = 18,000 - 7,000 - 8,000
Common stock = 3,000
A company's financial records report
the following accounts and balances at the end of the year:
Accounts payable$ 3,000
Accounts receivable 3,700
Cash 13,100
Common stock 4,600
Dividends 1,200
Interest expense 17,500
Notes payable 4,200
Prepaid insurance 1,700
Retained earnings 1,400
Service revenue 24,000
What would the company show as its total credits on its trial balance?
$37,200
This company's accounts that have debit balances include its assets (i.e., accounts receivable, cash, prepaid insurance, accounts receivable), expenses (i.e., interest expense), and dividends.
These sum to $37,200 (i.e., 3,700 + 13,100 + 1,200 + 1,700 + 17,500 = 37,200).
These sum to $37,200 (i.e., 3,000 + 4,600 + 4,200 + 1,400 + 24,000 = 37,200)
Note: total debits equal total credits.
At the start of the month, a corporation reported retained earnings of $154,000. During the month, it incurred expenses of $20,000, earned revenues of $35,000, received $25,000 of cash from stockholders in exchange for additional common stock, and paid dividends of $3,000. What is the balance in retained earnings at the end of the month?
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