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Financial Statements The following amounts were taken from the accounting records of Padget Home Services, Inc., as...

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Accounting

Financial Statements

The following amounts were taken from the accounting records ofPadget Home Services, Inc., as of December 31, 20Y7. Padget HomeServices began its operations on January 1, 20Y7.

Cash$ 60,000
Common stock75,000
Dividends15,000
Fees earned620,000
Interest expense4,800
Land215,000
Miscellaneous expense10,200
Notes payable80,000
Rent expense70,000
Salaries expense272,000
Taxes expense43,000
Utilities expense85,000

2. Prepare a statement of stockholders’ equityfor the year ending December 31, 20Y7. If your answer is zero enter"0".

Padget Home Services, Inc.
Statement of Stockholders’ Equity
For the Year Ending December 31, 20Y7
Common StockRetained EarningsTotal
Balances, Jan. 1, 20Y7$$$
Issued common stock
Net income
Dividends
Balances, Dec. 31, 20Y7$$$

Answer & Explanation Solved by verified expert
4.2 Ratings (817 Votes)

Padget Home Services, Inc.
Statement of Stockholders’ Equity
For the Year Ending December 31, 20Y7
Common Stock Retained Earnings Total
Balances, Jan. 1, 20Y7 $75,000.00 $              -   $   75,000.00
Issued common stock
Net income $1,35,000.00
Dividends $ (15,000.00)
Balances, Dec. 31, 20Y7 $75,000.00 $1,20,000.00 $1,95,000.00

Working note

Income statement
Fees earned $ 6,20,000.00
Less: expenses
Interest expense $        4,800.00
Miscelannious expense $      10,200.00
Rent expense $      70,000.00
Salaries expense $ 2,72,000.00
Taxes ex[pense $      43,000.00
Utilities expense $      85,000.00
Total expenses $ 4,85,000.00
Net income $ 1,35,000.00

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