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katen-ka-za [31]
3 years ago
15

On January 1, Gucci Brothers Inc. started the year with a $492,000 balance in Retained Earnings and a $605,000 balance in Common

Stock. During the year, the company earned net income of $92,000, paid a dividend of $15,200, and issued more common stock for $27,500. What is total stockholders' equity at the end of the year?
Business
1 answer:
Lerok [7]3 years ago
3 0

Answer:

Ending stockholders equity 1,200,500

Explanation:

$$Beginning Retained Earnings$$$+/- Net Income/Loss$$$- Dividends$$$Equals Ending Retained Earning

492,000 beginning RE

+92,000 retained earnings

-15,200 dividends

568,000 Ending RE

605,000 + 27,500 = 632,500 Ending Common Stock

632,500 + 568,000 = 1,200,500

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