Robertson Corporation incorporated on January 2, 2012. During 2012 Robertson had the following transactions: • issued 30,000 shares of common stock at $25 per share
• purchased 2,000 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, 2012?

Question

Quizplus · Accepted Answer

Stockholders' equity is calculated as: Common stock issued (30,000 shares x $25) = $750,000, plus net income of $400,000, minus treasury stock purchased (2,000 shares x $28) = $56,000. Total stockholders' equity = $750,000 + $400,000 - $56,000 = $1,094,000.

Robertson Corporation Incorporated on January 2, 2012