Teamboo Company's stockholders' equity at the beginning of August 2018 was $750,000. During the month, the company earned net income of $175,000 and paid dividends of $75,000. At the end of August 2018, what is the amount of stockholders' equity?

Question

Quizplus · Accepted Answer

Stockholders' equity at the beginning of August was $750,000. Adding the net income of $175,000 increases it to $925,000. Subtracting the dividends of $75,000 results in an ending stockholders' equity of $850,000.

Teamboo Company's Stockholders' Equity at the Beginning of August 2018