Question

ssued 10,800 shares of common stock at $6.00 per share. Issued 20,400 shares of common stock at $8.20 per share. Reported a net income of $108,000. Paid dividends of $59,000. Purchased 3,100 shares of treasury stock at $10.20 (part of the 20,400 shares issued at $8.20). What is total shareholders' equity at the end of 2021

Answer 1

$249,460

Step-by-step explanation:

Calculation to determine total shareholders' equity at the end of 2021

Issued of stock $64,800

( 10,800 shares *$6.00 per share)

Issued of stock $167,280

(20,400 shares *$8.20 per share)

Net income of $108,000

Less Dividends ( $59,000)

Less Treasury stock ($31,620)

( 3,100 shares $10.20)

2021 Ending total shareholders' equity $249,460

Therefore The total shareholders' equity at the end of 2021 is $249,460