Question

Overton, Inc. had the following transactions in 2017, its first year of operations: • Issued 15,000 shares of common stock. Stock has par value of $0.01 per share and was issued at $39.00 per share. • Earned net income of $300,000. • Paid dividends of $15.00 per share. At the end of 2017, what is total stockholders' equity?

Answer 1

total stockholders' equity = $660000

Step-by-step explanation:

given data

Issued = 15,000 shares

par value = $0.01 per share

issued = $39.00 per share

net income = $300,000

Paid dividends = $15.00 per share

to find out

total stockholders' equity

solution

we get here common stock that is express as

common stock = 15,000 × $39

common stock = $585000

and

dividends is = $15 × 15000

dividends = 225000

so

total stockholders' equity will be

total stockholders' equity = common stock + net income - dividends

total stockholders' equity = $585000 + $300,000 - 225000

total stockholders' equity = $660000