# Josue Fabricating, Inc.’s accountant has the following information available to prepare the Statement of Stockholder’s Equity for the year just ended. What is the total balance on the company’s Statement of Stockholder’s Equity? What is the amount of the contributed capital?

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

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FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 14, Problem 19EB
Textbook Problem
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## Josue Fabricating, Inc.’s accountant has the following information available to prepare the Statement of Stockholder’s Equity for the year just ended.What is the total balance on the company’s Statement of Stockholder’s Equity? What is the amount of the contributed capital?

To determine

To calculate:

The total balance on the stockholder’s equity statement of the company. Also, the amount of contributed capital.

Introduction:

Shareholder’s equity is that portion of capital which belongs to the shareholders or the owner of the company. It is also known as the net worth of the company and is identified into two parts - contributed capital and earned capital.

Contributed capital is the amount which is invested by the shareholders of the company and earned capital is the amount which is earned during the course of the business through its operations.

### Explanation of Solution

Calculations of total balance on the stockholder’s equity statement of the company are as shown below:

 Particulars Amount(\$) Common Stock 15,000 Add: Preferred Stock 18,000 Additional paid-in capital 14,000 Retained earnings 16,000 Total shareholder’s equity 63,000

Table (1)

Since the retained earnings are the component of earned capital; the contributed capital is the summa...

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