Stahl Consulting started the year with total assets of $60,000 and total liabilities of $15,000.During the year, the business recorded $48,000 in catering revenues and $30,000 in expenses.Stahl issued stock of $9,000 and paid dividends of $15,000 during the year.The stockholders' equity at the end of the year was

Question

Quizplus · Accepted Answer

To calculate the stockholders' equity at the end of the year, we need to add the net income (revenues - expenses) to the beginning stockholders' equity, and then add any additional contributions from the issuance of new stock and subtract any dividends paid out.

Beginning stockholders' equity: $60,000 - $15,000 = $45,000

Net income: $48,000 - $30,000 = $18,000

Total contributions from issuance of new stock: $9,000

Total dividends paid: $15,000

Ending stockholders' equity: $45,000 + $18,000 + $9,000 - $15,000 = $57,000

Therefore, the best choice is C, $57,000.

Stahl Consulting Started the Year with Total Assets of $60,000