During 2011,Stockton,Inc.reported net income of $4,000,declared and paid a cash dividend of $2,000,and issued common stock for $20,000.At December 31,2011,Stockton reported total shareholders' equity of $58,000.What was total shareholders' equity at the beginning of the year,on January 1,2011?

Question

Quizplus · Accepted Answer

To find the beginning shareholders' equity, subtract net income and issued stock, and add dividends to the ending equity: $58,000 - $4,000 - $20,000 + $2,000 = $36,000.