Bramble Corp.'s Stockholders' Equity Analysis: A Reflective Perspective

What should the transaction analysis show for the ending total of all stockholders' equity accounts?

Based on the information provided, what balances should be shown for Common Stock and Retained Earnings accounts at the end of the year?

Answer:

Common Stock Balance $155,800

Retained Earnings Balance $70,600

Reflecting on Bramble Corp.'s financial status, the ending total of all stockholders' equity accounts should show a Common Stock balance of $155,800 and a Retained Earnings balance of $70,600. These figures are derived from the initial balances, net income, dividends declared and paid, and additional common stock sold throughout the year.

The Common Stock balance reflects the initial stock amount of $123,500, with an additional $32,300 from the sale of new common stock during the year, resulting in a total of $155,800 in the Common Stock account.

On the other hand, the Retained Earnings balance is calculated by adding the opening balance of $52,900 with the net income earned of $26,500, totaling $79,400. Subsequently, deducting the dividends paid of $8,800 yields a final balance of $70,600 in the Retained Earnings account.

Therefore, the total equity for the stockholders' equity accounts at the end of the year is $226,400, consisting of Common Stock at $155,800 and Retained Earnings at $70,600.