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Financial Accounting Problem Help?

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Alpineslide
Posts: 405 - Karma: 49
This might be a long shot but some help would be appreciated.
k+ and props for life


On December 1, 2009, Millstone Corporation invested $45,000 in a new delivery truck. The truck is being depreciated at a monthly rate of $500. During 2009, the company issued stock for $60,000 and declared dividends of $5,000. Its net income in 2009 was $70,000. Millstone's ending Retained Earnings balance as reported in its December 31, 2009, balance sheet was $90,000. Its beginning Capital Stock balance on January 1, 2009, was $200,000.

Required:
Determine the total stockholders' equity reported in the company's balance sheet dated December 31, 2009. (Omit the "$" sign in your response.)

Total stockholders' equity $
Oct 20 2011 11:03PM
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Alpineslide
Posts: 405 - Karma: 49
Bump
Oct 20 2011 11:40PM
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Mr.Turtle
Posts: 3690 - Karma: 96
pretty sure i can get this done if i get a piece of paper before falling asleep
Oct 20 2011 11:42PM
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TechnoPotamus
Posts: 11626 - Karma: 3,522
not the simplest problem.


rather than take my best educated guess and be a little off i think, i'm trying to think of a certain member's name who i know is an accountant.

I think his name is Seargent Steamy. or Srgt Steamy...his icon is a bacon with a pot leaf hat...

let me check my friends... i feel like he'd be a good guy to ask.


SgtSteamy. try this guy, i think my memory is correct on this one.

Oct 20 2011 11:46PM
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Barefootin_Fiend
Posts: 7618 - Karma: 4,727
mmmmmm bacon flavored pot....or pot flavored bacon....either way, delicious.
Oct 21 2011 9:17AM
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TechnoPotamus
Posts: 11626 - Karma: 3,522
haha oops, name confusion!
Oct 21 2011 9:52AM
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zues
Posts: 6434 - Karma: -5,330
i'm leaving but I can get this problem done when I come back in an hour or 2. its pretty simple really. It's just knowing the concepts and the dates.
Oct 21 2011 12:49PM
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Alpineslide
Posts: 405 - Karma: 49
thanks for all the thought and help everyone, i found the answer
Oct 21 2011 1:35PM
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poptarts4life
Posts: 376 - Karma: 12
I just started accounting and I don't know if I understand this type of problem

In 2002, the assets of company X increased by $50,000 and liabilities decreased by $42,000. The company's total equity at the end of 2002 equals $200,000. Calc the company's total equity at the start of 2002.

*I made up this problem up, similar to another
*I don't care as much about an answer but I want to know if i'm doing the right steps/understanding it.
*I think the key is to change find the change of equity, but i'm not sure

So would I just:
1. set assets = equity + liabilities as equity = assets - liabilities
2. Input Δassets(50,000) - Δliabilities(-42,000) = Δequity for the year
3. -Δequity + year end equity(200,000) = starting equity

any input would be much appreciated
Jan 12 2012 4:34PM
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