Question

2017: sales revenue $777,100, cost of goods sold $520,000, operating expenses $89,200, and an unrealized holding loss on available-for-sale securities for 2017 of $53,700. It declared and paid a cash dividend of $11,670 in 2017.

Barber Co. has January 1, 2017, balances in common stock $360,400; accumulated other comprehensive income $86,000; and retained earnings $92,040. It issued no stock during 2017.

Prepare a statement of stockholders’ equity.

Prepare a statement of stockholders’ equity.

	Total	Retained Earnings	Income	Common Stock
Beginning Balance
Net Income
Other Comprehensive Income	x	x	x	x
Unrealized Holding Loss
Dividends
Ending Balance

Answer 1

	Total	Retaned earnings	Income	Common stock
Beginning balance	$ 5,38,440	$ 92,040	$   86,000	$3,60,400
Net Income	$ 1,67,900	$ 1,67,900
Other comprehensive income
Unrealized holding loss	$   -53,700		$ -53,700
Dividends	$   -11,670	$ -11,670
Ending Balance	$ 6,40,970	$ 2,48,270	$   32,300	$3,60,400
Workings:
Net Income = Sales - Cost of goods sold - operating expense
Net Income = $7,77,100 - $5,20,000 - $89,200
Net Income = $1,67,900