Answer:
increase in retained earnings = $48,000 - $11,800 = $36,200
increase in common stock = $58,000
<h2>Balance sheet</h2>
Assets:
Assets
Cash $54,400
Supplies $12,700
Prepaid rent $33,000
Land $290,000
Total assets $390,100
Liabilities
Accounts payable $15,600
Utilities payable $6,000
Salaries payable $5,300
Notes payable $33,000
Total liabilities $59,900
Equity
Common stock $226,000
Retained earnings $104,200
Total equity $330,200
Total liabilities + equity $390,100
<h2>Statement of stockholders' equity</h2>
Common stock balance Jan. 2018 $168,000
Retained earnings balance Jan. 2018 $68,000
Net income <u> $58,000</u>
Sub-total $294,000
Common stocks issued $58,000
Distributed dividends <u> ($11,800)</u>
Subtotal $330,200
Common stock balance Dec. 2018 $226,000
Retained earnings balance Dec. 2018 $104,200
