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Neporo4naja [7]
3 years ago
8

Clothing Emporium was organized on January 1, 2021. The firm was authorized to issue 100,000 shares of $5 par value common stock

. During 2021, Clothing Emporium had the following transactions relating to stockholders’ 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 2021?
Business
1 answer:
beks73 [17]3 years ago
8 0

Answer:

The total stockholders' equity at the end of 2021 is $250,000

Explanation:

In order to calculate the total stockholders' equity at the end of 2021 we would have to calculate the transactions relating to stockholders’ equity times the $5 par value common stock as follows:

stockholders' equity at the end of 2021=Issue of 30,000 shares*$5+Issue of 20,000 shares*$5

stockholders' equity at the end of 2021=$150,000+$100,000

stockholders' equity at the end of 2021=$250,000

The total stockholders' equity at the end of 2021 is $250,000

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On July 1, 2020, Crocus obtained a $90 million construction loan with a 6% interest rate. The loan was outstanding through the e
enyata [817]

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$4.5

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Interest to be capitalized=$90*6%*10/12=$4.5

As the loan was outstanding from January  to October 2021, therefore interest is worked out for 10 months.

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Here the television costs $400 to the firm and the customer is willing to pay $600 for the television. So by putting the values we have:

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