Question

Transactions that affected Barter Company’s stockholders’ equity during 2015, the first year of operations, follow.

(a) Issued 50,000 shares of $3 par common stock at $33.
(b) Purchased 6,000 shares of its own common stock at $35.
(c) Reissued 1,000 shares of treasury stock at $37. Dividends of $15,000 were paid in 2015, and net income for 2015 was $185,000.
What is total stockholders’ equity at the end of $2015?
a) $1,662,000
b) None of these
c) $1,820,000
d) $1,477,000
e) $1,645,000

Answer 1

Barter Company

The total stockholders' equity at the end of 2015 is:

= b) None of these

Step-by-step explanation:

a) Data and Analysis:

a. Cash $1,650,000 Common Stock $150,000 Additional Paid-up Capital $1,500,000

b. Treasury stock $18,000 Additional Paid-up Capital $192,000 Cash 210,000

c. Cash $37,000 Common Stock $3,000 Additional Paid-up Capital $34,000

d. Dividends $15,000 Cash $15,000

e. Net income = $185,000

Stockholders' Equity:

Common stock $153,000

APIC = 1,342,000

Net income = 185,000

Dividends = (15,000)

Total = $1,665,000