Question

​Midtown, Inc. had the following transactions in​ 2018, its first year of​ operations: bullet Issued​ 31,000 shares of common stock. Stock has par value of​ $1.00 per share and was issued at​ $20.00 per share. bullet Earned net income of​ $70,000. bullet Paid no dividends. At the end of​ 2018, what is total​ stockholders' equity?

Answer 1

Answer:

The stockholders' equity is $6,90,000.

Explanation:

Calculating the Total stockholders' equity:

Total stockholders equity = Beginning stock equity + Net income

Total stockholders equity = (31,000 * 20) + 70,000

Total stockholders equity = 6,20,000 + 70,000

Total stockholders equity = $6,90,000