Answer:
The retained earnings and total stockholders’ equity at the end of 20X1 are $73,000 and $92,000.
Explanation:
The shareholders' equity is made of two components. These are the retained earnings and common stock. Movement in the stockholders' equity is as a result of dividend and retained earnings.
Given;
At the start of the year 20X1,
retained earnings = $56,000
total stockholders’ equity = $75,000
During the year,
net income = $21,000
declared and paid cash dividends = $8,000
other comprehensive income = $4,000
At the end of 20X1,
retained earnings = $56,000 + $21,000 - $8,000 + $4,000
= $73,000
stockholders’ equity = $75,000 + $21,000 - $8,000 + $4,000
= $92,000
