SHOW ME HOW TO DO IT PLEASE! CLEAR INSTRUCTIONS
Solution
book value of stockholders\' equity at the end of the year
=[common stock + preferred stock + shares sold - treasury stock ] + retained earning - treasury stock + capital surplus
= (50000 + 20000 + 10000 - 5000) + 92900 + 22300
= 75000 + 92900 + 22300
=190200
Note:- Accumulated retained earnings = $78,600 + capital surplus - dividend
= 78600 + 22300 - 8000
=92900
.
SHOW ME HOW TO DO IT PLEASE! CLEAR INSTRUCTIONS DJ Companies so.docx
1. SHOW ME HOW TO DO IT PLEASE! CLEAR INSTRUCTIONS
DJ Companies sold $20,000 in stock and issued $15,000 in debt this past year. The firm
also repaid $18,000 on its loans and paid $3,200 in interest. During the year, DJ
Companies paid quarterly dividends which totaled to $8,000 for the year and earned a net
income of $22,300. The beginning balances at the start of the year were:
Preferred stock - $10,000
Treasury stock - $5,000
Long-term debt - $41,000
Accumulated retained earnings - $78,600
Capital surplus - $22,300
Common stock - $50,000
What is the book value of stockholders' equity at the end of the year?
SHOW ME HOW TO DO IT PLEASE! CLEAR INSTRUCTIONS
Solution
book value of stockholders' equity at the end of the year
=[common stock + preferred stock + shares sold - treasury stock ] + retained earning - treasury
stock + capital surplus
= (50000 + 20000 + 10000 - 5000) + 92900 + 22300
= 75000 + 92900 + 22300
=190200
Note:- Accumulated retained earnings = $78,600 + capital surplus - dividend
= 78600 + 22300 - 8000