Compute the dollar change and percent change for each account title, and select the answer choice from the drop-down list. use year 1 as the base year. accounts payable balance on year 1 is $75,000 and on year 2 is $65,000. bonds payable balance on year 1 is $225,000 and on year 2 is $220,000. common stock balance on year 1 is $300,000 and on year 2 is $310,000. retained earnings balance on year 1 is $100,000 and on year 2 is $145,000. total stockholder’s equity balance on year 1 is $400,000 and on year 2 is $455,000.

See Below.

Explanation:

We calculate the changes as follows,

Accounts payable

Year 1 = 75,000

Year 2 = 65,000

$ Change = $-10,000

% Change = -10000/75000 = -13.3%

Bonds Payable

Year 1 = 225,000

Year 2 = 220,000

$ Change = $-5,000

% Change = -5000/ 225,000 = -2.22%

Common Stock

Year 1 = 300,000

Year 2 = 310,000

$ Change = $10,000

% Change = 10000/300000 = 3.33%

Retained Earnings

Year 1 = 100,000

Year 2 = 145,000

$ Change = $45,000

% Change = 45,000/ 100,000 = 45%

Total Stockholders' Equity

Year 1 = 400,000

Year 2 = 455,000

$ Change = $55,000

% Change = 55,000/400,000 = 13.75%

Hope that helps.

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