Question

Monty Co. reports the following information for 2017: sales revenue $778,900, cost of goods sold $515,500, operating expenses $89,100, and an unrealized holding loss on available-for-sale securities for 2017 of $58,700. It declared and paid a cash dividend of $12,690 in 2017. Monty Co. has January 1, 2017, balances in common stock $355,000; accumulated other comprehensive income $84,300; and retained earnings $92,170. It issued no stock during 2017. Prepare a statement of stockholders’ equity. MONTY CO. Statement of Stockholders’ Equity Total Retained Earnings Accumulated Other Comprehensive Income Common Stock $ $ $ $ $ $ $ $

Answer 1

GIVEN INFORMATION:-

Sales revenue = 778,900

Cost of goods = 515,500

Operating expenses = 89,100

Unrealized holding loss =58,700

Cash dividend = 12,690

Common stock =355,000

Comprehensive income =84,300

Rretained earnings =92,170

REQUIRED :-

A statement of stockholders’ equity.

SOLUTION :-

STATEMENT OF STOCKHOLDERS EQUITY MONTY CO FOR THE YEAR 2017 :-

WORKING NOTE:

Net income = sales -Cost of goods sold - Operating expenses

= 778900 - 515500 - 89100

= 174300$

Therefore net income is 174300$.