On January 1,Gucci Brothers Inc.started the year with a $492,000 balance in Retained Earnings and a $605,000 balance in Common Stock.During the year,the company earned net income of $92,000,paid a dividend of $15,200,and issued more common stock for $27,500.What is total stockholders' equity at the end of the year?
A)$1,231,700.
B)$1,097,000.
C)$1,201,300.
D)$1,588,300.

Question

Quizplus · Accepted Answer

At the end of the year, total stockholders' equity can be calculated as follows:

Retained Earnings (beginning balance) + Net Income – Dividends Paid + Common Stock Issued = Total Stockholders' Equity

$492,000 + $92,000 - $15,200 + $27,500 = $1,201,300

Therefore, the correct answer is C.