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Statement of stockholders’ equity

Financial information related to Organic Products Company for the month ended June 30, 20Y9, is as follows:

Line Item Description Amount
Net income for June $ 116,000
Dividends paid in June 24,000
Common stock, June 1, 20Y9 170,000
Common stock issued in June 60,000
Retained earnings, June 1, 20Y9 1,560,000

Question Content Area
a. Prepare a statement of stockholders’ equity for the month ended June 30, 20Y9. If an amount box does not require an entry, leave it blank.

1 answer

Here's the statement of stockholders’ equity for Organic Products Company for the month ended June 30, 20Y9:

Organic Products Company
Statement of Stockholders’ Equity
For the Month Ended June 30, 20Y9

| Description | Common Stock | Retained Earnings | Total Stockholders’ Equity | |-----------------------|---------------|-------------------|----------------------------| | Balance, June 1, 20Y9| $170,000 | $1,560,000 | $1,730,000 | | Common Stock Issued | $60,000 | | $60,000 | | Net Income for June | | $116,000 | $116,000 | | Dividends Paid | | ($24,000) | ($24,000) | | | | | | | Balance, June 30, 20Y9 | $230,000 (170,000 + 60,000) | $1,652,000 (1,560,000 + 116,000 - 24,000) | $1,882,000 (230,000 + 1,652,000) |

Explanation:

  1. Balance, June 1, 20Y9: This represents the common stock and retained earnings at the beginning of the period.
  2. Common Stock Issued: The amount of common stock that was issued during June.
  3. Net Income for June: This adds to retained earnings for the month.
  4. Dividends Paid: This is deducted from retained earnings because dividends reduce the amount of earnings kept in the company.
  5. Final Balances: The final total common stock, retained earnings, and total stockholders’ equity are calculated at the end of June.

Final Balances:

  • Total Common Stock: $230,000 ($170,000 + $60,000)
  • Total Retained Earnings: $1,652,000 ($1,560,000 + $116,000 - $24,000)
  • Total Stockholders’ Equity: $1,882,000 ($230,000 + $1,652,000)

This should be the complete statement for the specified period.