How much issuance of stock did Allen Company have for the ye

How much issuance of stock did Allen Company have for the year?

Assets, January 1 Liabilities, January 1 Assets, December 31 Liabilities, December 31 Issuance of stock Revenues Expenses Dividends $ 42,000 24,000 90,000 50,000 30,700 16,700 8,900

Solution

Answer: $ 16,900

Accounting Equation :

Assets = Liabilities + Owners\' Equity

Owners\' Equity, Jan 1 = $ 42,000 - $ 24,000 = $ 18,000

Retained Earnings , Dec 31 = $ 30,700 - $ 16,700 - $ 8,900 = $ 5,100.

Owner\'s Equity, Dec 31 = $ 90,000 - $ 50,000 = $ 40,000.

Issuance of stock = $ 40,000 - $ 18,000 - $ 5,100 = $ 16,900.