Question

Zinc Co.'s adjusted trial balance at December 31, 2017 includes the following account balances:Common stock, $3 par $600,000Additional paid-in capital 800,000Treasury stock, at cost 50,000Net unrealized loss on non-current marketable equity securities 20,000Retained earnings: appropriated for uninsured earthquake losses 150,000Retained earnings: unappropriated 200,000What amount should Zinc report as total stockholders' equity in its December 31, 2017 balance sheet?

Answer 1

Stock holder's equity in 2017 is $1,680,000

Step-by-step explanation:

Given:

Common stock = $600,000

Paid in capital = $800,000

Retained earnings = $350,000 that is (200,000 + 150,000)

Stock holders' account credited = 600,000 + 800,000 + 350,000

= $1,750,000

Treasury stock cost = $50,000

Unrealized loss on non-current marketable equity securities = $20,000

Total stockholders' account debited = 50,000 + 20,000

= $70,000

Balance of stockholders' equity as on 31 December 2017 = 1,750,000 - 70,000

= $1,680,000