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lubasha [3.4K]
4 years ago
11

Exercise 4-16 Sheffield Co. reports the following information for 2020: sales revenue $777,100, cost of goods sold $520,000, ope

rating expenses $89,200, and an unrealized holding loss on available-for-sale debt securities for 2020 of $53,700. It declared and paid a cash dividend of $11,670 in 2020. Sheffield Co. has January 1, 2020, balances in common stock $360,400; accumulated other comprehensive income $86,000; and retained earnings $92,040. It issued no stock during 2020. (Ignore income taxes.) Prepare a statement of stockholders’ equity.
Business
1 answer:
Lesechka [4]4 years ago
3 0

Answer:

Sheffield Co  

statement of stockholders' equity    

for the year ended 31th December 2020    

                 Common Stock RE            OCI   Total

Balance Jan 1 360,400      92,040 86,000 538,440

Net Income                                 167,900                 167,900

unrealized loss                                              -53,700     -53,700

Dividends                        -11,670             -11,670

Stock issued

Balance, Dec 31 360,400      248,270          608,670

Explanation:

We need to calcualte the net income:

sales revenue           777,  100

cost of goods sold  (520,000)

operating expenses <u> (89,200) </u>

Net Income                167,900

This will go into retained earnings

Dividends will also impact on retained earnings

Unrealized holding loss on available-for-sale debt securities for 2020 of $53,700.

This will modify the other comprehensive income.

The rest, will be post the beginning balance and include this variation.

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