Question

Midyear on July 31st, the Baldwin Corporation's balance sheet reported: Total Liabilities of $25.710 million Cash of $2.010 million Total Assets of $41.640 million Retained Earnings of $9.053 million. What was the Baldwin Corporation's common stock

Answer 1

$6.877 million

Step-by-step explanation:

As we know that

Total Assets = Total Liabilities + Total Stockholders' Equity

Total Assets = Total Liabilities + (Retained Earnings + Total Common Stock)

$41.640 million = $25.710 million + $9.053 million + common stock

$41.640 million = $34.763 million + common stock

So, the common stock is

= $41.640 million - $34.763 million

= $6.877 million

We simply applied the accounting equation in this question