As of December 31, 2018, Warner Corporation reported the following: During 2019, half of the treasury stock was resold for $240,000; net income was $600,000; cash dividends declared were $1,500,000; and stock dividends declared were $500,000.
-What was shareholders' equity as of December 31, 2018?

Question

As of December 31, 2018, Warner Corporation reported the following:   During 2019, half of the treasury stock was resold for $240,000; net income was $600,000; cash dividends declared were $1,500,000; and stock dividends declared were $500,000. 
-What was shareholders' equity as of December 31, 2018?

Quizplus · Accepted Answer

$\begin{array}{lr}
\text { Paid-in capital-share repurchase } & 20,000 \
 \text { Other paid-in capital accounts } & 4,000,000 \
\text { Retained earnings } & 3,000,000 \
\text { Treasury stock } & (600,000)\\text { Total shareholders' equity }&\$6,420,000
\end{array}$

As of December 31, 2018, Warner Corporation Reported the Following