A company reported total stockholder's equity of $170,000 on its balance sheet dated December 31, 2014. During the year ended December 31, 2015, the company reported net income of $20,000, declared and paid a cash dividend of $4,000, declared and distributed a 10% stock dividend with a $5,000 total market value, and issued additional common stock for $40,000. what is the total stockholder's equity of December 31, 2015?

Respuesta :

Answer:

The total stockholder's equity of December 31, 2015 $ 226.000

Explanation:

Please see details below:

Equity   2.015  

Common Stock  $ 215.000

Retained Earnings  $ 11.000

TOTAL EQUITY  $ 226.000

Retained Earnings Report  

Opening retained earnings $ 0

Add: Net Income $ 20.000

Subtotal $ 20.000

Less: Dividens -$ 4.000

Less: Stock Dividends -$ 5.000

Total $ 11.000

Common Sotck  

Inicial Stock  $ 170.000

Stock Dividends $ 5.000

Subtotal $ 175.000

Additional Common Stock  $ 40.000

Total $ 215.000