Answer:
$1,388,200
Explanation:
The total stock holders equity as at the end of the year shall be determined as follows:
Common stock Retained Earnings Total
Balance of Jan 1 $597,000 $690,000 $1,287,000
Net income for year $96,000 $96,000
Dividend paid ($14,800) ($14,800)
Common stock $20,000 $20,000
Balance at year end $617,000 $771,200 $1,388,200
Answer:
$1,388,200
Explanation:
The owner's equity which is an element of the balance sheet and the accounting equation is made up of retained earnings and common stock. Movements in the owner's/stockholder's equity include payment of dividend, net income for the year, stock issued etc.
Given;
Opening retained earnings = $690,000
Opening common stock = $597,000
Net income for the year = $96,000
Dividend paid = $14,800
Issued stock = $20,000
Total stockholders' equity at the end of the year = $690,000 + $597,000 + $96,000 - $14,800 + $20,000
= $1,388,200
