At the beginning of the year (january 1), buffalo drilling has $12,000 of common stock outstanding and retained earnings of $6,200. during the year, buffalo reports net income of $6,500 and pays dividends of $1,200. in addition, buffalo issues additional common stock for $6,000.
required:
prepare the statement of stockholders' equity at the end of the year (december 31).

Explanation:

The preparation of the statement of stockholders' equity at the end of the year is presented below:

                                            Buffalo Drilling

                             Statement of stockholders' equity

                            At the end of the year (December 31)

Particulars      Common Stock           Retained earnings             Total

Beginning

Balance          $12,000                       $6,200                                $18,200

Net income                                         $6,500                                $6,500

Dividend paid                                   -$1,200                                 -$1,200

Additional

common stock  $6,000                                                                 $6,000

Total                  $18,000                  $11,500                                 $29,500              

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.