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As of December 31, 2021, Warner Corporation reported the following: Cash dividends payable $ 20,000 Treasury stock 600,000 Paid-in capital—share repurchase 20,000 Common stock and other paid-in capital accounts 4,000,000 Retained earnings 3,000,000 What was shareholders' equity as of December 31, 2021?

Respuesta :

The Shareholders' equity as of December 31, 2021 is $6760000

Explanation:

As per the given data in the question:

Calculation of  total Stockholder's equity  is as follows:

Common stock and other paid-in capital accounts (4000000 plus 400000)  = 4400000

Retained earnings (3000000 plus 600000 minus 500000 minus 400000 minus 40000)  = 2660000

Less; Treasury Stock  = -300000

Total Stockholder's equity  = 6760000

Thus, the shareholders equity as of December 31, 2021 is $6760000

The option with $6760000 is the correct option.

Note: the retained earnings were to be calculated using the data in the question

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