Understanding 2,3,4and5
1 answer:
You might be interested in
Answer:
$117,380,000
Step-by-step explanation:
Stockholders' Equity section of the balance sheet
Paid in capital:
common stock $120 Par (500,000 Shares Authorized, 400,000 Shares Issued) = $120 * 400,000 = $48,000,000
Excess over par = $6,400,000
Paid in capital, common stock = $48,000,000 + $6,400,000 =$54,400,000
From sale of treasury stock = $4,500,000
Sum total paid-in capital = $54,400,000 + $4,500,000 = $58,900,000
Retained earnings =$63,680,000
Treasury stock (40,000 shares at cost) = $5,200,000
Total stockholders’ equity =$58,900,000 + $63,680,000 - $5,200,000
= $117,380,000
