Marigold Co. reports the following information for 2020: sales revenue $780,800, cost of goods sold $519,000, operating expenses
$88,800, and an unrealized holding loss on available-for-sale debt securities for 2020 of $56,200. It declared and paid a cash dividend of $12,950 in 2020. Marigold Co. has January 1, 2020, balances in common stock $362,700; accumulated other comprehensive income $83,900; and retained earnings $98,160. It issued no stock during 2020. (Ignore income taxes.) Prepare a statement of stockholders’ equity.
1 answer:
Answer:
Explanation:
The statement of stockholder's equity comprises common stock and retained earnings. The ending balance after adjustment shown in the attached spreadsheet.
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
And, the ending balance of the common stock = Beginning balance of common stock + issued shares
Before preparing the statement of stockholders’ equity we need to calculate the net income or net loss as the case may be. The computation is shown below:
Net income = Sales revenue - cost of goods sold - operating expenses
= $780,800 - $519,000 - $88,800
= $173,000
The preparation of the statement of stockholders’ equity is presented in the spreadsheet. Kindly find the attachment below:
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