Question

xercise 4-16

Pina Co. reports the following information for 2017: sales revenue $752,600, cost of goods sold $502,200, operating expenses $81,200, and an unrealized holding loss on available-for-sale securities for 2017 of $54,300. It declared and paid a cash dividend of $12,620 in 2017.

Pina Co. has January 1, 2017, balances in common stock $354,900; accumulated other comprehensive income $81,300; and retained earnings $95,120. It issued no stock during 2017.

Prepare a statement of stockholders’ equity.

Answer 1

Pina Co.
Income Statement
For the Year Ended December 31, 2017
Sales Revenue		$752,600
Cost of merchandise sold		$502,200
Gross Profit		$250,400
Less: Operating Expenses		$81,200
Income from operations		$169,200
Other Income and Expenses
Unrealized holding loss on available-for-sale securities		-$54,300
Income before Income tax		$114,900
Less: Tax (25%)		$0
Net Income/(loss)		$114,900
Pina Co.
Shareholder's Equity Statement
For the Month Ended December, 2017
Retained Earnings		$95,120
Net Income/(loss) for the year	$114,900
Add: Accumulated other comprehensive income	$81,300
Less: Dividend Paid	$12,620
Increase in retained earnings		$183,580
Retained Earnings		$278,700