statement of stockholders’ equity\nbrenda tooley owns and operates speedy delivery services. on january 1…

statement of stockholders’ equity\nbrenda tooley owns and operates speedy delivery services. on january 1, 20y7, common stock had a balance of $75,000, and retained earnings had a balance of $615,700. during the year, $15,000 of additional common stock was issued, and $6,000 of dividends were paid. for the year ended december 31, 20y7, speedy delivery reported a net income of $85,300.\nprepare a statement of stockholders’ equity for the year ended december 31, 20y7. if a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. if an amount box does not require an entry, leave it blank.\nspeedy delivery services\nstatement of stockholders’ equity\nfor the year ended december 31, 20y7\nline item description common stock retained earnings total

statement of stockholders’ equity\nbrenda tooley owns and operates speedy delivery services. on january 1, 20y7, common stock had a balance of $75,000, and retained earnings had a balance of $615,700. during the year, $15,000 of additional common stock was issued, and $6,000 of dividends were paid. for the year ended december 31, 20y7, speedy delivery reported a net income of $85,300.\nprepare a statement of stockholders’ equity for the year ended december 31, 20y7. if a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. if an amount box does not require an entry, leave it blank.\nspeedy delivery services\nstatement of stockholders’ equity\nfor the year ended december 31, 20y7\nline item description common stock retained earnings total

Answer

Explanation:

Step1: Calculate ending common - stock balance

The beginning common stock balance is $75,000 and additional common stock issued is $15,000. So the ending common - stock balance is the sum of these two amounts. $75000 + 15000=90000$

Step2: Calculate ending retained earnings balance

The beginning retained earnings balance is $615,700. Net income for the year is $85,300 and dividends paid are $6,000. The formula for ending retained earnings is: Beginning Retained Earnings+Net Income - Dividends. $615700+85300 - 6000=700000$

Step3: Calculate total stockholders' equity

Total stockholders' equity is the sum of ending common stock and ending retained earnings. $90000 + 700000=790000$

Line Item Description Common Stock Retained Earnings Total
Beginning Balance $75,000 $615,700 $690,700
Issuance of Common Stock $15,000 $15,000
Net Income $85,300 $85,300
Dividends -$6,000 -$6,000
Ending Balance $90,000 $700,000 $790,000

Answer:

Line Item Description Common Stock Retained Earnings Total
Beginning Balance $75,000 $615,700 $690,700
Issuance of Common Stock $15,000 $15,000
Net Income $85,300 $85,300
Dividends -$6,000 -$6,000
Ending Balance $90,000 $700,000 $790,000