16E - Intermediate Accounting (Kieso)

Question

C.Reither Co. reports the following information for 2017: sales revenue \(700,000, cost of goods sold \)500,000, operating expenses \(80,000, and an unrealized holding loss on available-for-sale securities for 2017 of \)60,000. It declared and paid a cash dividend of \(10,000 in 2017. C Reither Co. has January 1, 2017, balances in common stock \)350,000; accumulated other comprehensive income \(80,000; and retained earnings \)90,000. It issued no stock during 2017. 

Instructions 

Prepare a statement of stockholders’ equity.

Step-by-Step Solution

Answer

The total ending balance of the statement of stockholder’s equity is $570,000.

Meaning of Statement of Stockholder’s Equity

Statement of stockholder's equity refers to one of the most useful financial statements for users or potential investors to make adequate decisions about investment.

Preparing a Statement of Stockholder’s Equity

Particulars	Total	Retained Earnings	Accumulated other comprehensive Income	Common Stock
Beginning Balance	520,000	90,000	80,000	350,000
Add: Net Income	120,000	120,000
Less:
Dividend	(10,000)	(10,000)
Other Comprehensive Loss	(60,000)		(60,000)
Ending Balance	570,000	200,000	20,000	350,000