Answer:
Explanation:
The preparation of the statement of stockholder equity and balance sheet is presented below:
a. Statement of stockholder equity
<u>Particulars Common stock Retained earnings Total stock equity</u>
Beg balance $150000 $50,000 $200,000
Add: Addi shares $40,000 $40,000
Add: Net income $30,000 $30,000
Less: dividend -$10000 -$10000
Total $190,000 $70,000 $260,000
b. Balance sheet
Assets Amount
Cash $52,600
Supplies $13,400
Prepaid rent $24,000
Land $200,000
Total assets $290,000
Liabilities Amount
Account payable $9,100
Un-earned revenue $2,400
Salaries payable $3,500
Notes payable $15,000
Stockholder equity $260,000
Total liabilities & stockholder equity $290,000
