2017: sales revenue $777,100, cost of goods sold $520,000, operating expenses $8

Question

2017: sales revenue $777,100, cost of goods sold $520,000, operating expenses $89,200, and an unrealized holding loss on available-for-sale securities for 2017 of $53,700. It declared and paid a cash dividend of $11,670 in 2017.

Barber Co. has January 1, 2017, balances in common stock $360,400; accumulated other comprehensive income $86,000; and retained earnings $92,040. It issued no stock during 2017.

Prepare a statement of stockholders’ equity.

Prepare a statement of stockholders’ equity.

              Total         Retained Earnings Income       Common Stock Beginning Balance Net Income Other Comprehensive Income x x x x Unrealized Holding Loss Dividends Ending Balance

Explanation / Answer

Total Retaned earnings Income Common stock Beginning balance $ 5,38,440 $ 92,040 $   86,000 $3,60,400 Net Income $ 1,67,900 $ 1,67,900 Other comprehensive income Unrealized holding loss $   -53,700 $ -53,700 Dividends $   -11,670 $ -11,670 Ending Balance $ 6,40,970 $ 2,48,270 $   32,300 $3,60,400 Workings: Net Income = Sales - Cost of goods sold - operating expense Net Income = $7,77,100 - $5,20,000 - $89,200 Net Income = $1,67,900

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