Manatee Company Manatee Company was incorporated as a new business on January 1,2012.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 1,2012,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 31,2012,was $375,000.
Refer to the information about Manatee Company.
Manatee's total stockholders' equity reported on the balance sheet at December 31,2012,is

Question

Quizplus · Accepted Answer

The total stockholders' equity is calculated by adding the proceeds from the issuance of common and preferred stock to the net income. Common stock proceeds: 8,000 shares * $15 = $120,000. Preferred stock proceeds: 2,000 shares * $30 = $60,000. Net income: $375,000. Total stockholders' equity = $120,000 + $60,000 + $375,000 = $555,000.

Manatee Company Manatee Company Was Incorporated as a New Business