Jamal Company Began the Year 2022 with $126,000 in Its

question 146

Multiple Choice

Jamal Company began the year 2022 with $126,000 in its Common Stock account and a debit balance in Retained Earnings of $54,000.During the year, the company earned net income of $27,000, and declared and paid $9,000 of dividends.In addition, the company sold additional common stock amounting to $33,000.Based on this information, what should the transaction analysis show for total stockholders' equity at the end of 2022?

• A)$231,000
• B)$249,000
• C)$123,000
• D)$165,000

---

Definitions:

Deposits in Transit

Funds that have been deposited by a company but not yet recorded by the bank, often causing a discrepancy in the bank statement versus the company’s record.

Contra-Revenue Account

An account that is deducted from a company's gross revenue, which results in net revenue, examples include sales returns, allowances, and discounts.

Sales Discounts

Refers to the reduction in the amount payable by a customer if the customer pays their invoice within a specific period as defined by the seller.

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collectible.