menu
bartleby
search
close search
Hit Return to see all results

NAPOLEAN CORPORATIONStatement of Stockholders' EquityFor Year Ended December 31, 2016CommonStockRetainedarningsTotalBalance, January 1, 2016Add: Net Income for 20162,4002,400Add: Issuance of Common Stock6,0006,000(900)7,5006,000Less: Dividends paid(enter as a negative)(900)(900)Balance, December 31, 20165,100 $7,500

Question

Napolean Corporation started business on January 1, 2016. The following information was compiled by Napolean’s accountant on December 31, 2016:

Sales Revenue $6,000 Equipment, net $4,500
Expenses 3,600 Building, net 12,000
Dividends 900 Accounts Payable 1,200
Cash 450 Notes Payable 9,900
Accounts Receivable 750 Common Stock 6,000
Inventory 900 Retained Earnings ?

NAPOLEAN CORPORATION
Statement of Stockholders' Equity
For Year Ended December 31, 2016
Common
Stock
Retained
arnings
Total
Balance, January 1, 2016
Add: Net Income for 2016
2,400
2,400
Add: Issuance of Common Stock
6,000
6,000
(900)
7,500
6,000
Less: Dividends paid
(enter as a negative)
(900)
(900)
Balance, December 31, 2016
5,100 $
7,500
help_outline

Image Transcriptionclose

NAPOLEAN CORPORATION Statement of Stockholders' Equity For Year Ended December 31, 2016 Common Stock Retained arnings Total Balance, January 1, 2016 Add: Net Income for 2016 2,400 2,400 Add: Issuance of Common Stock 6,000 6,000 (900) 7,500 6,000 Less: Dividends paid (enter as a negative) (900) (900) Balance, December 31, 2016 5,100 $ 7,500

fullscreen
check_circleAnswer
Step 1

As a first step, the net income earned during the year shall be computed by deducting the expenses from the revenues of the business.

Net Income = Revenues - Expenses = 6000 -3600 = $ 2400.

Step 2

As the business is in the forst year of operation,  the begining balance of Retained earnings is Nil.

Therefore, to compute the ending Balance of Retained earnings, the dividend paid shall be d...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: The December bank statement and cash T-account for Stewart Company follow:   BANK STATEMENT D...

A: Bank Reconciliation statement Bank Reconciliation Statement is the statement which is prepared to ov...

question_answer

Q: Krammer Company has liabilities equal to one fourth of the total assets. Krammer's stockholders' equ...

A: Accounting Equation: Accounting equation is the mathematical representation of the relationship amon...

question_answer

Q: Flexible Budgets; Total Operating Income Variance; Breakdown of the Total Operating Income Variance;...

A: 1. Total operating income variance for July.

question_answer

Q: Crane Company’s direct materials budget shows total cost of direct materials purchases for April $30...

A: Cash budget meaningA cash budget is an estimation of the cash inflows and surges for a business over...

question_answer

Q: Stratus Inc. purchased equipment for $18,500 and received an invoice with terms 4/10, 3/30, n/45. If...

A: Stratus Incorporation purchased equipment and it had terms 4/10, 3/30, n/45. In this case, the compa...

question_answer

Q: On January 1, 2019, Roosevelt Company purchased 12% bonds having a maturityvalue of $500,000 for $53...

A: Prepare amortization schedule.

question_answer

Q: Hello, Crichton Publications uses the accounting rate of return method to evaluate proposed capital ...

A: Accounting rate of return is computed by dividing the net increment in accounting income by the init...

question_answer

Q: The Melrose Corporation produces a single product, Product C. Melrose has the capacity to produce 10...

A: Incremental cost: Incremental cost refers to the cost incurred in producing an additional unit, in o...

question_answer

Q: AT SUGEY CIRCUS at jUNE 30 curren year has account payable....$31,320 accounts receivble 8,940 anima...

A: Balance Sheet The balance sheet is one of the financial statements prepared at the end of the financ...

Sorry about that. What wasn’t helpful?