Puppet Corporation began with an investment by shareholders of $11,000. a. In it

Question

Puppet Corporation began with an investment by shareholders of $11,000. a. In its first year its income earned $1,100. What would the equity section of its balance sheet show at year end? Common stock Retained eamings 11000 1100 s12100 b. In the second year it had income of $10,900 and a dividend of $2,100 was paid. What would the equity section of its balance sheet show at year end? Common stock Retained earnings c. In the third year, Puppet sold more shares for a value of $5,500, earned income of $4,100 and paid a dividend of $1,600. What would the equity section of its balance sheet show at year end? Common stock Retained earmings earnSmart Lab& H...zip 12 esc

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount a) Common Stock           11,000.00 Retained earnings             1,100.00           12,100.00 b) Common Stock           11,000.00 Retained earnings = 1100 + 10,900 - 2,100             9,900.00           20,900.00 c) Common Stock = 11,000 + 5,500           16,500.00 Retained earnings = 9900 + 4100 -1600           12,400.00           28,900.00

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