Answer:
$5,790,000 using opening balance assumption which was not provided in the question
Explanation:
Shareholders Equity 2019= Opening Shareholders Equity + Resold Treasury Stock + Net income - Cash Dividends Paid
Here
Resold Treasury Stock is $180,000
Net income $510,000
Cash Dividends Paid $1,320,000
Opening Shareholders Equity is missing so we assume the following remainder part as I didn't find the remainder part anywhere:
As of Dec. 31, 2018, Warner Corporation reported the following: Dividends payable- 20,000; treasury stock- 600,000; paid-in capital-share repurchase- 20,000; other paid-in capital accounts- 4,000,000; retained earnings- 3,000,000.
So
Opening Shareholder Equity = Opening paid-in capital accounts + Retained earnings - Treasury Stock + Paid in Capital share repurchases
Opening Shareholder Equity = $4,000,000 + $3,000,000 - $600,000 + 20,000 = $6,420,000
By putting values, we have:
Shareholders Equity = $6,420,000 + $180,000 + $510,000 - $1,320,000
Shareholders Equity = $5790,000
