Does This Accounting Answer Look Correct?
Here is the problem:
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My answer:
Stratfield, Inc.
Statement of Stockholders' Equity
For the year ended December 31, 2008
Contributed capital, December 31, 2007... $16,500
Add: Common stock issued in 2008... $4,000
Contributed capital, December 31, 2008... $20,500
Retained earnings, December 31, 2007... $11,300
Add: Net income... $12,980
Less: Dividends... ($3,000)
Retained earnings, December 31, 2008... $21,280
Total stockholders' equity, December 31, 2008... $41,780 ($20,500 + $21,280)
How does that look?
