Redfox Pest Control Service had revenues of $425,000 and expenses of $338,000 for the current year, ended June 30. At the beginning of the year, the common stock was $110,000 and the retained earnings was $70,000. During the year, shareholders purchased an additional $25,000 in stock. Dividends of $16,750 were paid. What is the balance of stockholders' equity at the end of the year?
A) $292,000
B) $267,250
C) $205,250
D) $275,250

Question

Quizplus · Accepted Answer

Balance at beginning of year = ($110,000 + $70,000) = $180,000 Plus Net income ($425,000 ? $338,000 = $87,000) and Stock purchased during year $25,000 = $292,000 Less Dividends, $16,750 Balance at end of year = $275,250

Redfox Pest Control Service Had Revenues of $425,000 and Expenses