At the end of the accounting period, Houston Company had $12,000 of par value common stock issued, additional paid-in capital in excess of par value − common of $11,000, retained earnings of $12,000, and $4,000 of treasury stock. The total amount of stockholders' equity is:

Question

Quizplus · Accepted Answer

Stockholders' equity is calculated as the sum of issued stock, additional paid-in capital, and retained earnings, minus treasury stock. Therefore, $12,000 (issued stock) + $11,000 (additional paid-in capital) + $12,000 (retained earnings) - $4,000 (treasury stock) = $31,000.

At the End of the Accounting Period, Houston Company Had