What is Included in Stockholders' Equity Form

Instructions and help about What Is Included In Stockholders' Equity

the statement of stockholders equity is important because it tells you why a company's equity accounts change from one balance sheet date to the next balance sheet date if you look at a company's balance sheet as of december 31 2021 you'll see all its different stockholders equity accounts you'll see common stock retained earnings and any other equity accounts the company happens to have but it won't tell you why those accounts have increased or decreased since the last balance sheet date and that's what you're going to find on the statement of stockholders equity so let's do a really really simple example for this company rubber monster and they just have two equity accounts they've got common stock and they've got retained earnings so we've got a real simple statement of stockholders equity here that we can easily understand so our balance in the account so we've got our common stocks these are in thousands so it'd be 2.5 million at the beginning of the period which was december 31st