Use the incomplete Stockholders' Equity section of Wilmerding Company's balance sheet as of December 31,2017,to answer the following question. ?
$\begin{array}{lr}
\text { Common stock } \$ 7 \mathrm{p} \text { ar, } 100,000 \text { shares authorized } & \$ 700,000 \
\text { Additional paid-in capital—common } & 160,000 \
\text { Retained earnings } & ? \
\text { Treasury stock (2,000 shares at cost) } & (16,000) \
\text { Total stockholders' equity } & 974,000
\end{array}$
What is the amount of Wilmerding's retained earnings?

Question

Use the incomplete Stockholders' Equity section of Wilmerding Company's balance sheet as of December 31,2017,to answer the following question. ?
$\begin{array}{lr}
\text { Common stock } \$ 7 \mathrm{p} \text { ar, } 100,000 \text { shares authorized } & \$ 700,000 \
\text { Additional paid-in capital—common } & 160,000 \
\text { Retained earnings } & ? \
\text { Treasury stock (2,000 shares at cost) } & (16,000) \
\text { Total stockholders' equity } & 974,000
\end{array}$
 What is the amount of Wilmerding's retained earnings?

Quizplus · Accepted Answer

Retained earnings = Total stockholders' equity - (Common stock + Additional paid-in capital - Treasury stock)= $974,000 - ($700,000 + $160,000 - $16,000)= $974,000 - $844,000= $130,000

Use the Incomplete Stockholders' Equity Section of Wilmerding Company's Balance