Use the Comparative Financial Statements of Penny Company for the Year

question 150

Essay

Use the comparative financial statements of Penny Company for the year ended December 31,2012 to answer the following question(s).
Penny Company
Statement of Stockholder's Equity
for the Year Ended December 31,2012
REQUIRED:
(1)What is the primary cause of the change in Penny's stockholders' equity from January 1,2012 to December 31,2012?
(2)Did Penny declare dividends during 2012? How do you know? Which items would be included as part of comprehensive income,if any?

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Definitions:

Basic Accounting Equation

An equation representing the relationship between assets, liabilities, and owner's equity: Assets = Liabilities + Owner's Equity.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, essentially representing the owner’s share of the company.

Consulting Revenues

Income generated by a firm through the provision of advisory or consultancy services.

Additional Investment

Extra funds invested into a business by its owners or shareholders over and above the initial or previous investments.