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2 years ago

The stockholders' equity of TVX Company at the beginning of the day on February 5 follows.

Business

1 answer:

Monica [59]2 years ago

4 0

Answer:

TVX Company

Stockholders Equity Section of the Balance Sheet, February 28

Common stock $632,400

Paid in capital in excess of par value, Common stock $449,040

Retained earnings $513,560

Total Stockholders Equity <u>$1,595,000</u>

<u>Workings</u>

Common Stock

= Common Stock + Dividends Declared

= 620,000 + ( 2% * 62,000 shares * $10 par value)

= 620,000 + 12,400

= $632,400

Paid in capital in excess of par value, Common stock

Dividends were declared based on current market value of $31 not par value of $10 so the differnce will be catered for here.

= Balance + Dividends Declared

= 423,000 + (2% * 62,000 * $21 which is differnce between par value and market value)

= 423,000 + 26,040

= $449,040

Retained earnings

= Retained Earnings - Dividends distributed

= 552,000 - (2% * 62,000 * $31)

= 552,000 - $38,440

= $513,560

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