Based on the following account balances from the ledger of the Sands Corp.;
A. Determine the Retained Earnings balance at 12/31/07.
Dividends for the year were $75,000 and the corporation’s net income was $340,000 for the year.
B. Determine the Total Stockholder’s Equity reported on the Balance Sheet 12/31/07.
| Account Titles | Account Balance |
|
Additional Paid In Capital Short term Investments |
$ 117,000 50,000 |
|
Preferred stock, 12%, $100 par value Common Stock, $5 par value Retained earnings, 1/1/07 |
400,000 1,650,000 125,000 |
|
Organizational expense Treasury Stock-common(2,000 shares) Merchandise Inventory |
1,500 37,000 105,000 |
|
Purchases Gain on sale of investment Dividend Revenue |
650,000 4,800 11,000 |
|
Accounts Payable Notes Payable Estimated income taxes payable |
400,000 80,000 115,000 |
|
Paid-in-capital-Donations Mortgage Payable Interest Expense |
200,000 105,000 7,500 |
|
Interest Payable Dividends Payable Dividends Cash |
3,000 15,000 75,000 146,000 |