Question

​August, Inc. had the following transactions in​ 2018, its first year of​ operations:

• Issued 29,000 shares of common stock. The stock has par value of $2.00 per share and was issued at $14.00 per share.
• Issued ,500 shares of $200.00 par value preferred stock at par.
• Earned net income of $39,000. bullet• Paid no dividends.
At the end of​ 2018, what is total​ stockholders' equity?

Answer 1

Total 545,000

Step-by-step explanation:

29,000 x 2 = 58,000 common stock

29,000 x 12 = 348,000 additional paid-in capital

500 x 200 = 100,000 preferred stock

Net income 39,000

Dividends none

Total 545,000