Respuesta :
Common shares ($576,000) ($30,000 x 60% x 12) +$360,000 $120,000 more was paid in capital. Retained earnings ($364,000) = ($580,000 - (30,000 x 60% x 12)).
What does the balance sheet's section on stockholders' equity mean?
The balance sheet account for stockholders equity, sometimes referred to as shareholders equity, is made up of share capital plus retained earnings.
What distinguishes the shareholders equity portion of a corporate balance statement from that of a corporation with a single owner?
The ownership of investors is represented by stockholders' equity. Due to the fact that there is just one owner, there are differences between this and a single-owner business. The sole owner can determine the value of the company over which they still have control by adding up all of the assets and liabilities on the balance sheet.
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