Question

A corporation began the month of May with $58,000 of obligations and $180,000 of economic resources. Stockholders equity increased by $22,000 during May. The company paid $11,000 of dividends and generated revenue totaling $145,000 How much is totaling stockholders Equity at the end of May?

A. $33,000
B. $144,000
C. $122,000
D. $111,000

Answer 1

The total stockholders equity at the end of May is $144,000.

Step-by-step explanation:

To determine the total stockholders equity at the end of May, we need to consider the changes in obligations, economic resources, and the increase in stockholders equity.

Starting with $58,000 of obligations and $180,000 of economic resources, the difference between them is:

$180,000 - $58,000 = $122,000

In addition, the stockholders equity increased by $22,000 during May. So, the total stockholders equity at the end of May is:

$122,000 + $22,000 = $144,000

Therefore, the correct answer is B. $144,000.