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:
- Balance, June 1, 20Y9: This represents the common stock and retained earnings at the beginning of the period.
- Common Stock Issued: The amount of common stock that was issued during June.
- Net Income for June: This adds to retained earnings for the month.
- Dividends Paid: This is deducted from retained earnings because dividends reduce the amount of earnings kept in the company.
- 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.
1 answer