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At the beginning of Year 2, Jones Company had a balance in common stock of $300,000...

At the beginning of Year 2, Jones Company had a balance in common stock of $300,000 and a balance of retained earnings of $15,000. During Year 2, the following transactions occurred:

· Issued common stock for $90,000
· Earned net income of $50,000
· Paid dividends of $8,000
· Issued a note payable for $20,000

Based on the information provided, what is the total stockholders' equity on December 31, Year 2?

Business   Accounting   
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Answer #1

Total Stockholders' equity= Total common stock+ Retained earnings

=$390,000+$57,000=$447,000

Common Stock Retained Earnings Total
Opening Balances $300,000 $15,000 $315,000
Issue during the year $90,000 $90,000
Net Income $50,000 $50,000
Dividend paid ($8,000) ($8,000)
Closing Balance $390,000 $57,000 $447,000

Note:- Issued a note payable does not have any effect on stockholders' Equity

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