Anole Company
Anole Company was incorporated as a new business on January 1, 2015.The company is authorized to issue 20,000 shares of $5 par value common stock and 10,000 shares of 6%, $10 par value, cumulative, participating preferred stock.On January 1, 2015, the company issued 8,000 shares of common stock for $15 per share and 2,000 shares of preferred stock for $30 per share.Net income for the year ended December 31, 2015, was $375,000.
-Refer to the information about Anole Company.
Anole's total stockholders' equity reported on the balance sheet at December 31, 2015, is

Question

Quizplus · Accepted Answer

The total stockholders' equity is calculated by adding the proceeds from the issuance of common and preferred stock to the net income. Common stock: 8,000 shares x $15 = $120,000. Preferred stock: 2,000 shares x $30 = $60,000. Net income: $375,000. Total stockholders' equity = $120,000 + $60,000 + $375,000 = $555,000.

Anole Company Anole Company Was Incorporated as a New Business on January