Wilson Company has the following accounts and account balances at the end of its first year: Accounts payable, $4,000 Cash, $20,000 Common stock,? Dividends, $1,000 Expenses, $17,000 Notes payable, $6,000 Prepaid insurance, $2,000 Revenues, $22,000 What is the balance of its common stock account at the end of the first year?

Question

Lukas

Business

18 June, 08:39

Wilson Company has the following accounts and account balances at the end of its first year: Accounts payable, $4,000 Cash, $20,000 Common stock,? Dividends, $1,000 Expenses, $17,000 Notes payable, $6,000 Prepaid insurance, $2,000 Revenues, $22,000 What is the balance of its common stock account at the end of the first year?

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Adolfo Campos · Answer 1

What is the balance of its common stock account at the end of the first year?

$24000

Explanation:

Common stock 20000

Retainend earning 5000

Dividends - 1000

Common stock 24000

Revenue 22000

Expenses 17000

Net income 5000