The following information was extracted from the accounting records of Brankov Company:
$$\begin{array} { l l }
\text { beginning Paid-in Capital } & \$ 90,000 \
\text { beginning Retained Earning } & \$ 300,000 \
\text { beginning Assets } & \$ 455,000 \
\text { Contributions by Owners } & \$ 7 \
\text { Cash dividends declared } & \$ 0 \
\text { Revenues } & \$ 200,000 \
\text { Expenses } & \$ 155,000
\end{array}$$
At the end of the period,what is the total amount of stockholders' equity?
A) $65,000
B) $135,000
C) $390,000
D) $435,000

Question

The following information was extracted from the accounting records of Brankov Company:
$$\begin{array} { l l } 
\text { beginning Paid-in Capital } & \$ 90,000 \
\text { beginning Retained Earning } & \$ 300,000 \
\text { beginning Assets } & \$ 455,000 \
\text { Contributions by Owners } & \$ 7 \
\text { Cash dividends declared } & \$ 0 \
\text { Revenues } & \$ 200,000 \
\text { Expenses } & \$ 155,000
\end{array}$$
At the end of the period,what is the total amount of stockholders' equity?
A) $65,000
B) $135,000
C) $390,000
D) $435,000

Quizplus · Accepted Answer

Stockholders' equity at the end of the period is calculated as the sum of Paid-in Capital, Retained Earnings at the beginning, Contributions by Owners during the period, and Net Income (Revenues - Expenses) minus any dividends declared. Here, it is $90,000 (beginning Paid-in Capital) + $300,000 (beginning Retained Earnings) + $7 (Contributions by Owners) + ($200,000 - $155,000) (Net Income) = $435,007. Since no option exactly matches this due to rounding or a minor error in the options provided, the closest correct option is $435,000.

The Following Information Was Extracted from the Accounting Records of Brankov