Use the following information to answer:
The Williams Model Aircraft Repair Shop started the year with total assets of $180,000, total liabilities of $120,000, and retained earnings of $54,000. During the year, the business recorded $300,000 in repair revenues, $210,000 in expenses, and the company paid dividends of $45,000.
-If The Williams Model Aircraft Repair Shop ends the year with total assets of $240,000, and total liabilities of $105,000, what must be the amount of common stock issued during the year?

Question

Quizplus · Accepted Answer

End of year stockholders' equity = Total assets - Total liabilities
= ($240,000 - $105,000 = $135,000)
End of year retained earnings = Start of year retained earnings + Net income - Dividends
= ($54,000 + ($300,000 - $210,000) - $45,000 = $99,000.)
End of the year common stock = Year-end stockholders' equity - Year-end retained earnings
= ($135,000 - $99,000 = $36,000)
Start of year common stock = Start of year stockholders' equity - Start of year retained earnings
= (($180,000 - $120,000) - $54,000 = $6,000).
Common stock issued during the year = End of year common stock - Start of year common stock
= ($36,000 - $6,000 = $30,000)

Use the Following Information to Answer