Answer:
Stockholders equity is $17,900,000
Explanation:
The stockholders'equity section of the balance sheet refers to the worth of shareholders' investment in the business.
It comprises of capital paid as well as the returns earned on it thus far,in other words,the retained earnings.
Common stock $1 stated value $150,000+($1*40000) $190,000
Additional paid capital $3,050,000+($13*40,000) $ 3,570,000
Total paid capital $ 3,760,000
Retained earnings($12,400,000+$2,200,000-$460,000) $ 14,140,000
Stockholders equity $17,900,000
The retained earnings for the month is the opening retained earnings plus net income minus cash dividends declared,since dividends are been paid from retained earnings
