Here is selected information from the 12/31/X7 Trial Balance and Balance Sheet f
ID: 2401376 • Letter: H
Question
Here is selected information from the 12/31/X7 Trial Balance and Balance Sheet for Tang Services, Inc.:
Unadjusted Balances
From Adjusted Trial Balance
Cash
$10,500
$10,500
Accounts receivable
6,000
6,450
Prepaid rent
1,700
1,370
Accounts payable
6,800
6,800
Common stock
12,000
12,000
Retained earnings
5,600
??
Service revenue
6,700
Rent expense
800
Dividends
500
For this question only, assume that net income had totaled $6,000 for the year ended 12/31/x7. What amount of total stockholders' equity would appear on the 12/31/x7 balance sheet?
$23,100
$11,100
$17,100
$17,600
Unadjusted Balances
From Adjusted Trial Balance
Cash
$10,500
$10,500
Accounts receivable
6,000
6,450
Prepaid rent
1,700
1,370
Accounts payable
6,800
6,800
Common stock
12,000
12,000
Retained earnings
5,600
??
Service revenue
6,700
Rent expense
800
Dividends
500
Explanation / Answer
Stockholder's equity $ $ Common Stock 12,000 Beginning balance of retained earnings 5,600 Add: Net income during the period 6,000 Less: Dividends (500) Ending balance of retained earnings 11,100 Total stockholder's equity on 12/31/X7 23,100