Question

Tar Heel Corporation provides the following information at the end of 2018.

   

Salaries payable to workers at the end of the year	$	2,600
Advertising expense for the year		9,700
Building that has been purchased		73,000
Supplies at the end of the year		3,900
Retained earnings		37,800
Utility expense for the year		5,300
Note payable to the bank		21,500
Service revenue earned during the year		65,900
Salary expense for the year		26,000
Accounts payable to suppliers		7,000
Dividends paid to shareholders during the year		?
Common stock that has been issued, including $5,000
that was issued this year		25,000
Cash remaining		4,500
Interest expense for the year		1,750
Accounts receivable from customers		12,500

The balance of retained earnings at the beginning of the year equals $24,950.

Required:

2. Prepare the statement of stockholders’ equity for the year ended December 31, 2018.
  

TAR HEEL CORPORATION
Statement of Stockholders’ Equity
For the year ended December 31, 2018
	Common Stock	Retained Earnings	Total Stockholders’ Equity
Beginning balance		$24,950
Issuance of common stock	5,000		5,000
Add: Net income		23,150	23,150
Less: Dividends
Ending balance

help with the second chart fill in blanks please

Answer 1

Tar-Heel Corporation

2 Prepare the statement of stockholders’ Equity for the year ended December 31, 2018:

Tar-Heel Corporation
Statement of Stockholders' Equity
for the year ended December 31, 2018
	Common Stock	Retained Earnings	Total Stockholders' Equity
Beginning Balance	$20,000	$24,950	$44,950
Issuance of common stock	$5,000		$5,000
Add: Net Income		$23,150	$23,150
Less: Dividends		$10,300	$10,300
Ending Balance	$25,000	$37,800	$62,800

Beginning balance of common stock = ending balance – stock issue in current year

= $25,000 - $5,000 = $20,000

Dividends = retained earnings beg. Balance + net income – retained earnings ending balance

= 24,950 + 23,150 – 37,800 = $10,300