Clothing Emporium was organized on January 1,2015.The firm was authorized to issue 100,000 shares of $5 par value common stock.During 2015,Clothing Emporium had the following transactions relating to shareholders' equity: Issued 30,000 shares of common stock at $7 per share.
Issued 20,000 shares of common stock at $8 per share.
Reported a net income of $100,000.
Paid dividends of $50,000.
What is the total stockholders' equity at the end of 2015?

Question

Quizplus · Accepted Answer

The total stockholders' equity is calculated as follows:  - Common stock issued: (30,000 shares * $7) + (20,000 shares * $8) = $210,000 + $160,000 = $370,000  - Add net income: $370,000 + $100,000 = $470,000  - Subtract dividends paid: $470,000 - $50,000 = $420,000  Thus, the total stockholders' equity is $420,000.

Clothing Emporium Was Organized on January 1,2015