Question

What is the total Stockholders equity based on the following accounts:

Common stock $375,000
Paid-in-capital in excess of par $90,000
Retained earnings $190,000
Treasury stock $15,000 a) $640,000
b) $640,000,000
c) $640
d) $64,000

Answer 1

Stockholders' equity is calculated by summing common stock, paid-in capital in excess of par, retained earnings, and subtracting treasury stock. The total Stockholders' equity in this case is $640,000.

Step-by-step explanation:

The total Stockholders' equity can be calculated by adding the value of common stock, paid-in capital in excess of par, and retained earnings, then subtracting the treasury stock from this sum. Based on the provided accounts, the calculation is as follows:

• Common stock: $375,000
• Paid-in-capital in excess of par: $90,000
• Retained earnings: $190,000
• Less: Treasury stock: $15,000

So the total Stockholders' equity is $375,000 + $90,000 + $190,000 - $15,000 = $640,000.

Therefore, the correct answer is a) $640,000.