Zinc Co.'s adjusted trial balance at December 31, Year 6, includes the following account balances: Common stock, $3 par $600,000 Additional paid-in capital 800,000 Treasury stock, at cost 50,000 Net unrealized holding loss on available-for-sale securities 20,000 Retained earnings: Appropriated for uninsured earthquake losses 150,000 Retained earnings: Unappropriated 200,000 What amount should Zinc report as total equity in its December 31, Year 6, balance sheet? a. $1,680,000

b. $1,720,000

c. $1,780,000

d. $1,820,000

Question

Brendon

Business

12 August, 09:55

Zinc Co.'s adjusted trial balance at December 31, Year 6, includes the following account balances: Common stock, $3 par $600,000 Additional paid-in capital 800,000 Treasury stock, at cost 50,000 Net unrealized holding loss on available-for-sale securities 20,000 Retained earnings: Appropriated for uninsured earthquake losses 150,000 Retained earnings: Unappropriated 200,000 What amount should Zinc report as total equity in its December 31, Year 6, balance sheet? a. $1,680,000

b. $1,720,000

c. $1,780,000

d. $1,820,000

+3

Answers (1)

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Rosa Cain · Answer 1

a. $1,680,000

Explanation:

The computation of the total equity is shown below:

= Common stock + Additional paid-in capital + Appropriated for uninsured earthquake losses retained earnings + Unappropriated retained earnings - treasury stock - Net unrealized holding loss on available-for-sale securities

= $600,000 + $800,000 + $150,000 + $200,000 - $50,000 - $20,000

= $1,750,000 - $70,000

= $1,680,000