of 6500 and pays dividends of 1200 In addition Buffalo issue

of $6,500 and pays dividends of $1,200. In addition, Buffalo issues additional common stock for $8,000.

Solution

BUFFALO DRILLING STATEMENT SHOWING STOCKHOLDER\'S EQUITY Common Stock Rertained Earnings Total Stockholders Equity Beginning Balance $               12,000 $              6,200 $                            18,200 Add: Issued Common Stock $                  6,000 $                     -   $                              6,000 Add:Net Income $                         -   $              6,500 $                              6,500 Less: Dividends $                         -   $              1,200 $                              1,200 Ending Balance $               18,000 $            11,500 $                            29,500