Question

Clint’s Stonework Corporation was organized on January 1, 2015. For its first two years of operations, it reported the following:

Net income for 2015 $ 31,800

Net income for 2016 42,800

Dividends for 2015 13,300

Dividends for 2016 18,400

Total assets at the end of 2015 131,000

Total assets at the end of 2016 263,000

Common stock at the end of 2015 90,000

Common stock at the end of 2016 90,000

Required:

On the basis of the data given, prepare a statement of stockholders’ equity for 2016.

Answer 1

Clint's Stonework Corporation
Stockholders Equity
For the year ended December 31
	2016		2015
Common stock		$90,000		$90,000
Retained Earnings:
Opening Retained earnings	18,500		-
Net Income	42,800		31,800
Less: Dividends	(18,400)		(13,300)
Retained Earnings to stock holders		42,900		18,500
Total stockholders' Equity		132,900		108,500