In addition, the balance of common stock at the beginning of the year was $650,000, and the balance of retained earnings was $50,000. during the year, the company issued additional shares of common stock for $34,000 and paid dividends of $28,000. in addition, the company reported balances for the following assets and liabilities on december 31. assets liabilities cash $ 54,400 accounts payable $ 15,600 supplies 12,700 utilities payable 6,000 prepaid rent 33,000 salaries payable 5,300 land 290,000 notes payable 33,000 required: 1. prepare a statement of stockholders’ equity. 2. prepare a balance sheet.

Assets                                 Liabilies

Cash                         54,400Account Payable    15,600

Supplies                          12,700Salaries Payable     5,300

Prepaid Rent                 33,000Utilities payable     6,000

Total Current Assets100,100Note Payable           33,000

Land                       290,000Total liabilities   59,900

                                         Common Stock684,000

                                         RE                          -353,800(A)

                                         Total Equity         330,200

Total Asets390,100                  Liab + SE         390,100

                  Common StockRetained EaringsTotal

Balance Jan 1650,000                     50,000700,000

Net Loss                                        -375,800(B)   -375,800

Dividends                                     -28,000  -28,000

Stock issued           34,000                                    34,000

Balance, Dec 31684,000                 -353,800330,200

Explanation:

(A)

We calcualte RE ending balance using the accounting equation:

Assets = Liabilities + Equity

390,100 = 59,900 + Common stock + RE

390,100 = 59,900 + (650,000 + 34,000) + RE

RE = 390,000  -59,900 - 684,000

RE = -353,800

Then we construct the Stockholders equity statement

(B)

net loss will be:

begining RE + income + dividend = ending RE

50,000 + income - 28,000 = -353,800

income= -353,800 +28,000 - 50,000 = -375,800 net loss as it is negative.

the answer is true

for e2020 ; -;

answer///supply is elastic, and demand is inelastic;