Question

At the end of the accounting period, houston company had $12,000 of par value common stock issued, additional paid-in capital in excess of par value - common of $11,000, retained earnings of $12,000, and $4,000 of treasury stock. the total amount of stockholders' equity is:

Answer 1

The amount of stockholder's equity is calculated as -

Total stockholder's equity = Common stock issued + Additional paid in capital + Retained earnings - Treasury capital

Total stockholder's equity = $ 12,000 + 11,000 + $ 12,000 - $ 4,000

Total stockholder's equity = $ 31,000