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.
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