1. Acquired $72,000 cash from the issue of common stock. 2. Borrowed $26,000 fro

Question

1. Acquired $72,000 cash from the issue of common stock. 2. Borrowed $26,000 from the First City Bank. 3. Earned $59,000 of cash revenue. 4. Incurred $43,000 of cash expenses. 5. Paid a $7,000 cash dividend. 6. Paid $43,000 to purchase land. 10 polnts eBookRequired Prepare a statement of changes in stockholders' equity Hint OLLIE COMPANY Statement of Changes in Stockholders' Equity For the Period Ended December 31, Year 1 Print Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity 0

Explanation / Answer

OLLIE COMPANY

Statement of Changes in Stockholder's Equity

For the period ended December 31, year 1

Beginning common stock

$           0.00  

Add: Issued During the year

$ 72,000.00

Ending Common Stock

$     72,000.00

Beginning Retained earnings

$            0.00

Add: Net profit during the year

$ 16,000.00*

Ending Retained earnings

$     16,000.00

Less: Dividends Paid

$     (7,000.00)

Total Stock holder's Equity

$     81,000.00

*Net profit = Cash Income minus Cash expenses

Net profit = $ 59000-43000

Net profit = $ 16000

OLLIE COMPANY

Statement of Changes in Stockholder's Equity

For the period ended December 31, year 1

Beginning common stock

$           0.00  

Add: Issued During the year

$ 72,000.00

Ending Common Stock

$     72,000.00

Beginning Retained earnings

$            0.00

Add: Net profit during the year

$ 16,000.00*

Ending Retained earnings

$     16,000.00

Less: Dividends Paid

$     (7,000.00)

Total Stock holder's Equity

$     81,000.00

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