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    Computing Change in Common Stock

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    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?
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    Solution Summary

    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.