Question

Skysong Co. reports the following information for 2020: sales revenue $776,200, cost of goods sold $517,000, operating expenses $90,200, and an unrealized holding loss on available-for-sale debt securities for 2020 of $60,700. It declared and paid a cash dividend of $12,430 in 2020. Skysong Co. has January 1, 2020, balances in common stock $369,200; accumulated other comprehensive income $88,300; and retained earnings $98,980. It issued no stock during 2020. (Ignore income taxes.) Prepare a statement of stockholders’ equity.

Answer 1

Answer:

Skysong Co.

Statement of Stockholders' Equity

For the year ended December 31, 2020

                   Common        Retained     Accum. other                Total

                   stock               earnings     comprehensive I.

Jan. 1          $369,200        $98,980        $88,300                 $556,480

Unrealized                                               ($60,700)

holding loss

Net income                        $169,000

Dividends                           ($12,430)

Subtotal      $369,200      $255,550      $27,600                 $652,350

Explanation:

sales revenue $776,200

cost of goods sold $517,000

operating expenses $90,200

net income = $169,000

and an unrealized holding loss on available-for-sale debt securities for 2020 of $60,700.