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Anna71 [15]
3 years ago
12

Scott Lockhart owns and operates AAA Delivery Services. On January 1, 20Y7, Common Stock had a balance of $40,000 and Retained E

arnings of $815,500. During the year, no additional common stock was issued, and $10,000 of dividends were paid. For the year ended December 31, 20Y7, AAA Delivery reported a net income of $67,250. Prepare a statement of stockholders' equity for the year ended December 31, 20Y7.
Business
1 answer:
Ulleksa [173]3 years ago
7 0

Answer and Explanation:

The preparation of the statement of stockholder equity should be presented below:

<u>Statement of stockholders' equity </u>

<u>For the year ended December 31, 20Y7 </u>

<u>Particulars                   Common Stock          Retained Earnings          Total </u>

<u>Beginning balance, </u>

January 1                       40000                           815500                        855500

Add: Net income            0                                    67250                           67250

Less: Dividends paid     0                                    -10000                        -10000

Ending balance,

December 31                  40000                              872750                   912750

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