At the beginning of 2024, Norton Academy reported a balance in common stock of $168,000 and a balance in retained earnings of $68,000. During the year, the company issued additional shares of stock for $58,000, earned net income of $48,000, and paid dividends of $11,800. In addition, the company reported balances for the following assets and liabilities on December 31. AssetsLiabilitiesCash$54,400Accounts payable$15,600Supplies12,700Utilities payable6,000Prepaid rent33,000Salaries payable5,300Land290,000Notes payable33,000 Required:Prepare a statement of stockholders’ equity. Stmt ofStockholders Balance SheetEquityPrepare a statement of stockholders' equity.NORTON ACADEMYStatement of Stockholders' EquityFor the Year Ended December 31, 2024TotalCommonStockRetainedStockholders'EarningsEquityBeginning Balance$168,000 $68,000 $259,000Issuance of Common StockAdd: Net incomeLess: DividendsEnding Balance$168,00068,000259,000Stmt of Stockholders EquityBalance Sheet>

Answered: At the beginning of 2024, Norton…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter12: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 22E: Statement of stockholders equity The stockholders equity T accounts of I-Cards Inc. for the year...

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At the beginning of 2024, Norton Academy reported a balance in common stock of $168,000 and a balance in retained earnings of $68,000. During the year, the company issued additional shares of stock for $58,000, earned net income of $48,000, and paid dividends of $11,800. In addition, the company reported balances for the following assets and liabilities on December 31.

Assets	Liabilities
Cash	$54,400	Accounts payable	$15,600
Supplies	12,700	Utilities payable	6,000
Prepaid rent	33,000	Salaries payable	5,300
Land	290,000	Notes payable	33,000

Required:

Prepare a statement of stockholders’ equity.

Stmt of
Stockholders Balance Sheet
Equity
Prepare a statement of stockholders' equity.
NORTON ACADEMY
Statement of Stockholders' Equity
For the Year Ended December 31, 2024
Total
Common
Stock
Retained
Stockholders'
Earnings
Equity
Beginning Balance
$
168,000 $
68,000 $
259,000
Issuance of Common Stock
Add: Net income
Less: Dividends
Ending Balance
$
168,000
68,000
259,000
Stmt of Stockholders Equity
Balance Sheet
>

Expert Solution

Introduction :

Common Stock :

Ending balance = Beginning balance + Issuance of common stock

Retained earnings :

Ending balance = Beginning balance + Net Income - Dividends

Total Stockholders equity = Common Stock + Retained earnings

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