Orlando Corporation incorporated on January 2,2015.During 2015,Orlando had the following transactions: • issued 30,000 shares of common stock at $25 per share.The par value per share is $1.
• purchased 5,000 shares of treasury stock at $28 per share
• had net income of $400,000.
What is the total amount of stockholders' equity as of December 31,2015?

Question

Quizplus · Accepted Answer

The total stockholders' equity is calculated as follows: Common stock issued = 30,000 shares * $1 par value = $30,000; Additional paid-in capital = 30,000 shares * ($25 - $1) = $720,000; Treasury stock = 5,000 shares * $28 = $140,000; Net income = $400,000. Total stockholders' equity = $30,000 + $720,000 - $140,000 + $400,000 = $1,010,000.

Orlando Corporation Incorporated on January 2,2015