Question

Scott Lockhart owns and operates AAA Delivery Services. On January 1, 20Y7, Common Stock had a balance of $60,000, and Retained Earnings had a balance of $825,500. During the year, no additional common stock was issued, and $13,000 of dividends were paid. For the year ended December 31, 20Y7, AAA Delivery reported a net income of $65,500. Prepare a statement of stockholders' equity for the year ended December 31, 20Y7.

Answer 1

Answer:

Explanation:

The stockholder's equity statement is composed of common stock and retained earnings. The ending balance shown in the attached spreadsheet, after modification.  

The Ending balance of earnings retained = Starting balance of earnings retained + net income - dividend paid

And, Ending balance of common stock = Starting balance of common stock + issued stock

The preparation of the stockholders ' equity statement for the year ended December 31, 20Y7 is provided in the spreadsheet. The attachment below is: