Question

CBA Company reported total stockholders' equity of $95,000 on its balance sheet dated December 31, 2018. During the year ended December 31, 2019, CBA reported net income of $11,000, declared and paid a cash dividend of $3,000, and issued additional common stock for $30,000. What is total stockholders' equity as of December 31, 2019?

Answer 1

The total stockholders' equity as of December 31, 2019 is $133,000.

Step-by-step explanation:

Stockholders' equity otherwise known as shareholders' equity is, going by accounting equation, the total assets of a company left to the stockholders after payment for all liabilities.

CBA Company total stockholders' equity as of December 31, 2019 is calculated as follows:

Opening stockholders' equity $95,000

Add Net income $11,000

Issued additional common stock $30,000

Deduct Declared and paid a cash dividend ($3,000)

Total stockholders' equity as of December 31, 2019 $133,000