Splish Brothers Inc. began the year 2022 with $151200 in its Common Stock account and a debit balance in Retained Earnings of $64800. During the year, the company earned net income of $32400, and declared and paid $10800 of dividends. In addition, the company sold additional common stock amounting to $39600. Based on this information, what should the transaction analysis show for total stockholders' equity at the end of 2022?

Question

Hallie Le

Business

27 September, 05:14

Splish Brothers Inc. began the year 2022 with $151200 in its Common Stock account and a debit balance in Retained Earnings of $64800. During the year, the company earned net income of $32400, and declared and paid $10800 of dividends. In addition, the company sold additional common stock amounting to $39600. Based on this information, what should the transaction analysis show for total stockholders' equity at the end of 2022?

+4

Answers (1)

Know the Answer?

Zachery Bernard · Answer 1

Equity will icnrease by 61,200 dollars

Explanation:

Common Stock Ret Earings Total

Balance Jan 1 151,200 - 64,800 86,400

Net Earnings 32,400 32,400

Dividends - 10,800 - 10,800

Stock issued 39,600 39,600

Balance, Dec 31 190,800 - 43,200 147,600

The net change in equity will be:

147,600 - 86,400 = 61,200