Stockholders' equity of Eden Industries totals $63,000 in combined common stock and retained earnings. Assuming common stock and retained earnings of Eden are equal, how should Eden reflect this on its classified balance sheet?

Respuesta :

Answer:

Under classified balance sheet, common stock and retained earnings are reported separately

Explanation:

Under equity section of balance sheet, common stock and retained earnings are line items i.e they are reported under equity section of balance sheet separately.

The total of these two should also be separated i.e the total is a line item also. And this forms the total equity provided there are no other line items for the for the period again.

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