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2. The following is selected financial information for Cargo company for 2012 and 2013: (10) Retained earnings, January 1 Net
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Statement of Stock holders Equity
For the year ended 31st march 2013
Particulars Common Stock at par Retained earnings Total Sock Holders Equity
$ $ $
Opening balance at 2013 70000 75000 145000
Issued Shares for cash during 2013 20000 - 20000
Net Income - 42000 42000
Cash Dividends declared and paid - -18000 -18000
Balance on December 31st 90000 99000 189000
Note: For the Opening Balance of the Retained Earnings for the period 2013.Please find the Calculation below.
Calucalation of Opening Balance of Retaining Earnings for 2013
Particulars $
Opening Balance of Retain Earnings in 2012 53000
Net Income for the Period 2012 37000
cash dividends declared and paid -15000
Balance of Retain Earnings At end of 2012 75000
Statement of Stock holders Equity
For the year ended 31st march 2013
Particulars Common Stock at par Retined earnings Total Sock Holders Equity
$ $ $
Opening balance at 2013 70000 75000 145000
Issued Shares for cash during 2013 20000 - 20000
Net Income - 42000 42000
Cash Dividends declared and paid - -18000 -18000
Balance on December 31st 90000 99000 189000
Calucalation of Opening Balance of Retaining Earnings for 2013
Particulars $
Opening Balance of Retain Earnings in 2012 53000
Net Income for the Period 2012 37000
cash dividends declared and paid -15000
Balance of Retain Earnings At end of 2012 75000
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