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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

 

 

 

 

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