On January 1,20B,Milburn Corporation had the following balances in its shareholders' equity accounts: Common shares - $100,000 (10,000 shares)and Retained earnings - $30,000.During 20B,the company issued 1,000 additional shares of common shares for $10 per share,reported profit of $40,000,and paid cash dividends of $20,000.What amount of total shareholders' equity would the company report in its December 31,20B,statement of financial position?

Question

Quizplus · Accepted Answer

- Beginning balance of common shares: $100,000
- Issued additional common shares: $10 per share x 1,000 shares = $10,000
- Ending balance of common shares: $100,000 + $10,000 = $110,000 (11,000 shares)
- Beginning balance of retained earnings: $30,000
- Reported profit during 20B: $40,000
- Paid dividends during 20B: $20,000
- Ending balance of retained earnings: $30,000 + $40,000 - $20,000 = $50,000
- Total shareholders' equity: $110,000 (common shares) + $50,000 (retained earnings) = $160,000

On January 1,20B,Milburn Corporation Had the Following Balances in Its