" I know the total revenues, cost of goods sold, salaries and wages expense, net income, and the beginning and ending retained earnings."
Assets - Liabilities = total Equity
Total Equity - End Retained Earnings = Common stock
(this assumes there are no other types of stock, e.g. Preferred, and that the Common stock was issued at Par, e.g. no excess paid-in-capital.)
First you need to figure out the total Owners Equity (OE). Assets = Liabilities + OE. Because you have the Assets and Liabilities, you can solve for OE. Owners Equity includes both common stock and retained earnings. Based on what you are telling me you already have the retained earnings statement filled out (assuming you filled it out correctly) you can then solve for the common stock.
Try subtracting ending retained earnings from beginning retained earnings
I have the total assets and the liabilities, but both the common stock and retained earnings are blank and I have to fill them in. Please help me, I am really trying to understand how to get the answer. What do I need to use to find those two answers? I know what the total stockholder's equity is supposed to be, but split between the two...I'm stumped. I'm not sure if this will help, but I have the Income statement and the retained earnings statement filled out. I know the total revenues, cost of goods sold, salaries and wages expense, net income, and the beginning and ending retained earnings. I originally thought that maybe the retained earnings would be the beginning and ending retained earnings added together but I was wrong. :(
