Respuesta :
Answer:
Total Stockholder's Equity = $7,200,000
Explanation:
Power Drive Corporation
Partial Balance Sheet
As on Dec.31, 2021
Stockholder's Equity:
Common Stock $100,000
Additional Paid in-Capital $4,500,000
Retained Earning at beginning $2,000,000
Add: Net income $600,000
Total Retained Earnings $2,600,000
Total Stockholder's Equity $7,200,000
Answer:
Power Drive Corporation
Stockholders' equity section of the balance sheet as at December 31, 2021
Amount in $ Amount in $
Stockholder's Equity
Common Stock 100,000
Additional Paid in-Capital 4,500,000
Retained Earning at beginning 2,000,000
Add: Net income 600,000
Total Retained Earnings 2,600,000
Total Stockholder's Equity 7,200,000
Explanation:
Shareholder's equity represents the amount owed to the owners of the business shown on the balance sheet.
This includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid), additional paid-in capital and common shares.
