Question

A company reported total stockholders' equity of $176,000 on its balance sheet dated December 31, 2018. During the year ended December 31, 2019, the company reported net income of $20,600, declared and paid a cash dividend of $4,600, declared and distributed a 10% stock dividend with a $5,600 total market value, and issued additional common stock for $46,000. What is total stockholders' equity as of December 31, 2019

Answer 1

the total stockholder equity is $238,000

Step-by-step explanation:

The computation of the total stockholder equity is shown below

= Opening stockholder equity balance + net income - cash dividend paid + additional common stock issued

= $176,000 + $20,600 - $4,600 + $46,000

= $238,000

Hence, the total stockholder equity is $238,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered