Anole Company

Anole Company was incorporated as a new business on January 1, 2017. The company is authorized to issue 20,000 shares of $5 par value common stock and 10,000 shares of 6%, $10 par value, cumulative, participating preferred stock. On January 1, 2017, the company issued 8,000 shares of common stock for $15 per share and 2,000 shares of preferred stock for $30 per share. Net income for the year ended December 31, 2017, was $375,000.

-Refer to the information about Anole Company.
Anole's total stockholders' equity reported on the balance sheet at December 31,2017,is

Question

Anole Company

Anole Company was incorporated as a new business on January 1, 2017. The company is authorized to issue 20,000 shares of $5 par value common stock and 10,000 shares of 6%, $10 par value, cumulative, participating preferred stock. On January 1, 2017, the company issued 8,000 shares of common stock for $15 per share and 2,000 shares of preferred stock for $30 per share. Net income for the year ended December 31, 2017, was $375,000.

-Refer to the information about Anole Company.  
Anole's total stockholders' equity reported on the balance sheet at December 31,2017,is

Quizplus · Accepted Answer

The total stockholders' equity at December 31, 2017, can be calculated as follows:- Common stock issued: 8,000 shares at $5 par value = $40,000- Additional paid-in capital on common stock: (8,000 shares * ($15 - $5)) = $80,000- Preferred stock issued: 2,000 shares at $10 par value = $20,000- Additional paid-in capital on preferred stock: (2,000 shares * ($30 - $10)) = $40,000- Retained earnings: Net income for the year = $375,000Total stockholders' equity = $40,000 + $80,000 + $20,000 + $40,000 + $375,000 = $555,000.

Anole Company Anole Company Was Incorporated as a New Business on January