Question

Anole Company was incorporated as a new business on January 1, 2015. The company is authorized to issue 20,000 shares of $5 par value common stock and 10,000 shares of 6%, $10 par value, cumulative, participating preferred stock. On January 1, 2015, the company issued 8,000 shares of common stock for $15 per share and 2,000 shares of preferred stock for $30 per share. Net income for the year ended December 31, 2015, was $375,000.

1. Refer to the information about Anole Company.
The amount of Anole’s total contributed capital at December 31, 2015, is
2. Refer to the information about Anole Company.
The number of Anole’s unissued shares of common stock at December 31, 2015, is
3. Refer to the information about Anole Company.
Anole’s total stockholders' equity reported on the balance sheet at December 31, 2015, is:___________

Answer 1

Answer: See explanation

Step-by-step explanation:

1. The amount of Anole's total contributed capital at December 31, 2015, will be:

= (8,000 × $15) + (2,000 × $30)

= $120,000 + $60,000

= $180,000

2. The number of Anole's unissued shares of common stock at December 31, 2015, will be:

= $20,000 - $8,000

= $12,000

3. Anole's total stockholders' equity reported on the balance sheet at December 31, 2015 will be:

= (8,000 × $15) + (2,000 × $30) + $375,000

= $120,000 + $60,000 + $375,000

= $555,000