Anole Company was incorporated as a new business on January 1, 2016.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, 2016, 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, 2016, was $375,000.

-Refer to the information about Anole Company.
Anole's total stockholders' equity reported on the balance sheet at December 31, 2016, is

Question

Anole Company was incorporated as a new business on January 1, 2016.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, 2016, 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, 2016, was $375,000.
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-Refer to the information about Anole Company. ​
Anole's total stockholders' equity reported on the balance sheet at December 31, 2016, is

Quizplus · Accepted Answer

The total stockholders' equity at December 31, 2016, can be calculated by adding the initial capital raised from issuing common and preferred stock to the net income for the year. The company issued 8,000 shares of common stock at $15 per share, raising $120,000 (8,000 shares * $15/share), and 2,000 shares of preferred stock at $30 per share, raising $60,000 (2,000 shares * $30/share). The total capital raised from these issuances is $180,000 ($120,000 + $60,000). Adding the net income of $375,000 to this amount gives a total of $555,000 ($180,000 + $375,000) in stockholders' equity.

Anole Company Was Incorporated as a New Business on January