Tiger Company's total stockholders' equity at the beginning of the year was $175,000.During the year Tiger reported the following: Net income of $79,000.
Dividend declarations totaling $17,000.
Issued stock to stockholders in exchange for $42,000 cash.
Borrowed $20,000 from a stockholder.
What is Tiger's total stockholders' equity at the end of the year?

Question

Quizplus · Accepted Answer

Tiger's total stockholders' equity at the end of the year is calculated as follows: Beginning equity ($175,000) + Net income ($79,000) - Dividends ($17,000) + Issued stock ($42,000). The borrowing does not affect stockholders' equity. Therefore, the total is $279,000.

Tiger Company's Total Stockholders' Equity at the Beginning of the Year