Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Great Adventures has net income of $179,000 in 2014. Retained earnings at the be

ID: 2371617 • Letter: G

Question

Great Adventures has net income of $179,000 in 2014. Retained earnings at the beginning of 2014 was $164,000. Prepare the stockholders’ equity section of the balance sheet for Great Adventures as of December 31, 2014.

Common stock?

Additional paid-in capital?

Treasury stock?

Retained earnings?

Great Adventures has net income of $179,000 in 2014. Retained earnings at the beginning of 2014 was $164,000. Prepare the stockholders’ equity section of the balance sheet for Great Adventures as of December 31, 2014.

Common stock?

Additional paid-in capital?

Treasury stock?

Retained earnings?

Explanation / Answer

Retained Earnings, Jan 1, 2014: $164,000

Net income: $179,000

Retained earnings, Dec 31, 2014: $343,000


The information given only addresses the retained earnings portion of the stockholder's equity section of the balance sheet. All the paid-in capital goes before the retained earnings and the sum of the paid-in capital and retained earnings is the total for stockholder's equity.