The Following Account Balances Appear in the 2015 Adjusted Trial

question 93

Essay

The following account balances appear in the 2015 adjusted trial balance of
Diamond Corporation: Common Stock,$21,000;Retained Earnings,$8,000;Dividends,
$2,000;Service Revenue,$30,000;Salaries Expense,$13,000;and Utilities Expense,
$7,000.No common stock was issued during the year.Prepare the statement of
stockholders' equity for the year ended December 31,2015.

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Definitions:

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends, which is reinvested into business operations.

Deferred Tax Assets

Financial assets that reduce future tax liability due to temporary differences between the ledger and tax basis of assets and liabilities, or the carryover of unused tax credits/deductions.

Income Tax Expense

The cost to a company for its taxable income, comprising current tax liabilities and deferred tax movements.

Service Revenue

Income earned from the provision of services to customers or clients.