Use the incomplete stockholders' equity section of Wilmerding Company's balance sheet as of December 31, 2016, to answer the following question. $\begin{array}{lr}
\text { Common stock, } \$ 7 \text { par, } 100,000 \text { shares authorized } & \$ 700,000 \
\text { Additional paid-in capital-common } & 160,000 \
\text { Retained earnings } & ? \
\text { Treasury stock }(2,000 \text { shares at cost) } & (16,000) \
\text { Total stockholders' equity } & 974,000
\end{array}$ ? What is the amount of Wilmerding's retained earnings?

Question

Quizplus · Accepted Answer

The total stockholders' equity is $974,000. The sum of common stock ($700,000), additional paid-in capital ($160,000), and treasury stock (-$16,000) is $844,000. Therefore, retained earnings must be $974,000 - $844,000 = $130,000.

Use the Incomplete Stockholders' Equity Section of Wilmerding Company's Balance