Baldwin Company currently has the following balances on their balance sheet:
Total Assets $209,961
Total Liabilities $130,905
Retained Earnings $26,979
Suppose next year the Baldwin Company generates $44,200 in net profit, pays $12,000 in dividends, total assets increase by $55,000, and total liabilities remain unchanged. What will ending Baldwins balance in Common Stock be next year?
This solution illustrates how to find the ending balance in an account b y knowing the beginning balances in all of the other accounts and the total activity during the year.