Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 13: Q22RQ (page 707)

What does the statement of stockholders’ equity report? How does the statement of stockholders’ equity differ from the statement of retained earnings?

Short Answer

Expert verified

The statement of stockholders' equity is another choice for accounting the changes in stockholders' equity of a corporation. This statement of stockholders possesses more information in comparison to the statement of retained earnings in statement of stockholders it reports the changes in all stockholders' equity accounts, not just retained earnings.

Step by step solution

01

Introduction to Statement of stockholders

A statement of shareholders' equity represents the changes within the equity section of the balance sheet throughout an assigned time frame.

02

The statement of stockholders’ equity differs from the statement of retained earnings

The retained earnings statement represents the changes between the starting and ending balances of the retained earnings account during the period, the statement of stockholders' equity represents the changes between the starting and ending amount of each of the stockholders' equity accounts, including retained earnings.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Identifying advantages and disadvantages of a corporation

Following is a list of advantages and disadvantages of the corporate form of business. Identify each quality as either an advantage or a disadvantage.

g. Government regulation is expensive

Question: Organizing a corporation and issuing stock

Jimmy and Randy are opening a comic store. There are no competing comic stores in the area. They must decide how to organize the business. They anticipate profits of \(550,000 the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow. They feel the corporate form of operation will be best for the long term. They seek your advice.

Requirements

3. If they decide to issue \)3 par common stock and anticipate an initial market price of \(75 per share, how many shares will they need to issue to raise \)3,000,000?

Identifying advantages and disadvantages of a corporation

Following is a list of advantages and disadvantages of the corporate form of business. Identify each quality as either an advantage or a disadvantage.

b. Entity has continuous life.

Preparing an income statement

The following information was taken from the records of Arizona Motorsports, Inc. at November 30, 2018:

Learning Objectives 3, 4

1. Nov. 8 Treasury Stock \(36,000

Learning Objective 5

Net Income \)37,840

Selling Expenses

Administrative Expenses

Income from Discontinued Operations

Cost of Goods Sold

Treasury Stock—Common (1,500 shares)

Net Sales Revenue

\( 95,000

150,000

2,400

470,000

19,500

801,400

Common Stock, \)11 Par Value, 13,500

shares authorized and issued \( 148,500

Preferred Stock, \)2 No-Par Value, 2,000

shares issued 60,000

Income Tax Expense: Continuing

Operations 50,000

Income Tax Expense: Income from

Discontinued Operations 960

Prepare a multi-step income statement for Arizona Motorsports for the fiscal year ended November 30, 2018. Include earnings per share

What is a stock dividend?
See all solutions

Recommended explanations on Business Studies Textbooks

Organizational Communication

Read Explanation

Nature of Business

Read Explanation

Strategic Analysis

Read Explanation

Influences On Business

Read Explanation

Business Case Studies

Read Explanation

Managerial Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free