Question

Midyear on July 31st, the Chester Corporation's balance sheet reported: Total Liabilities of $77.152 million Cash of $6.030 million Total Assets of $125.703 million Retained Earnings of $27.859 million. What was the Chester Corporation's common stock? Select: 1Save Answer $26.722 million $20.692 million $76.410 million $82.440 million

Answer 1

Chester Corporation's common stock is $20.692 million.

Step-by-step explanation:

Use the Accounting Equation : Assets = Equity + Liabilities to determine Chester Corporation's common stock.

Let the value of Common Stock be Cs

Then,

Assets = Equity + Liabilities

$125.703 million = $27.859 million + $77.152 million + Cs

Cs = $125.703 million - ($27.859 million + $77.152 million)

= $20.692 million

Therefore,

Common Stock is $20.692 million