the following is selected financial information for d. kay dental laboratories for 2023 and 2024:\n\n| |…

the following is selected financial information for d. kay dental laboratories for 2023 and 2024:\n\n| | 2023 | 2024 |\n|--|--|--| \n| retained earnings, january 1 | $64,000 |? |\n| net income | 48,000 | 53,000 |\n| dividends declared and paid | 26,000 | 29,000 |\n| common stock | 81,000 |? |\n\nkay issued 3,100 shares of additional common stock in 2024 for $31,000. there were no other shareholder transactions.\n\nrequired:\nprepare a statement of stockholders equity for d. kay dental laboratories for the year ended december 31, 2024.\nnote: amounts to be deducted should be indicated by a minus sign.\n\nd. kay dental laboratories\nstatement of stockholders equity\nfor the year ended december 31, 2024\n| | common stock | retained earnings | total stockholders equity |\n|--|--|--|--| \n| balance at january 1, 2024 | | | |\n| | | | |\n| | | | |\n| balance at december 31, 2024 | | | |

the following is selected financial information for d. kay dental laboratories for 2023 and 2024:\n\n| | 2023 | 2024 |\n|--|--|--| \n| retained earnings, january 1 | $64,000 |? |\n| net income | 48,000 | 53,000 |\n| dividends declared and paid | 26,000 | 29,000 |\n| common stock | 81,000 |? |\n\nkay issued 3,100 shares of additional common stock in 2024 for $31,000. there were no other shareholder transactions.\n\nrequired:\nprepare a statement of stockholders equity for d. kay dental laboratories for the year ended december 31, 2024.\nnote: amounts to be deducted should be indicated by a minus sign.\n\nd. kay dental laboratories\nstatement of stockholders equity\nfor the year ended december 31, 2024\n| | common stock | retained earnings | total stockholders equity |\n|--|--|--|--| \n| balance at january 1, 2024 | | | |\n| | | | |\n| | | | |\n| balance at december 31, 2024 | | | |

Answer

Explanation:

Step1: Calculate beginning retained earnings for 2024

The beginning retained earnings for 2024 is the ending retained earnings for 2023. Using the formula: Ending Retained Earnings = Beginning Retained Earnings+Net Income - Dividends. For 2023, beginning retained earnings is $64,000$, net income is $48,000$ and dividends are $26,000$. So, ending retained earnings for 2023 (beginning for 2024) is $64000 + 48000-26000=86000$.

Step2: Calculate ending retained earnings for 2024

Using the formula Ending Retained Earnings = Beginning Retained Earnings+Net Income - Dividends. Beginning retained earnings is $86,000$, net income in 2024 is $53,000$ and dividends are $29,000$. So, ending retained earnings is $86000 + 53000-29000 = 110000$.

Step3: Calculate beginning common - stock for 2024

The beginning common - stock for 2024 is the ending common - stock for 2023, which is $81,000$.

Step4: Calculate ending common - stock for 2024

The company issued additional common stock worth $31,000$ in 2024. So, ending common - stock is $81000+31000 = 112000$.

Step5: Calculate beginning total stockholders' equity for 2024

Beginning total stockholders' equity=Beginning common stock + Beginning retained earnings. So, it is $81000 + 86000=167000$.

Step6: Calculate ending total stockholders' equity for 2024

Ending total stockholders' equity=Ending common stock + Ending retained earnings. So, it is $112000+110000 = 222000$.

Common Stock Retained Earnings Total Stockholders' Equity
Balance at January 1, 2024 $81,000$ $86,000$ $167,000$
Issuance of common stock $31,000$ 0 $31,000$
Net income 0 $53,000$ $53,000$
Dividends declared and paid 0 -$29,000$ -$29,000$
Balance at December 31, 2024 $112,000$ $110,000$ $222,000$

Answer:

Common Stock Retained Earnings Total Stockholders' Equity
Balance at January 1, 2024 $81,000$ $86,000$ $167,000$
Issuance of common stock $31,000$ 0 $31,000$
Net income 0 $53,000$ $53,000$
Dividends declared and paid 0 -$29,000$ -$29,000$
Balance at December 31, 2024 $112,000$ $110,000$ $222,000$