As of December 31, 2018, Warner Corporation reported the following: Dividends payable $ 32,000 Treasury stock 570,000 Paid-in capital-share repurchase 32,000 Other paid-in capital accounts 5,200,000 Retained earnings 4,200,000 During 2019, half of the treasury stock was resold for $250,000; net income was $570,000; cash dividends declared were $1,380,000; and stock dividends declared were $620,000. What was shareholders' equity as of December 31, 2018?

Question

Shannon Gibbs

Business

29 August, 18:14

As of December 31, 2018, Warner Corporation reported the following: Dividends payable $ 32,000 Treasury stock 570,000 Paid-in capital-share repurchase 32,000 Other paid-in capital accounts 5,200,000 Retained earnings 4,200,000 During 2019, half of the treasury stock was resold for $250,000; net income was $570,000; cash dividends declared were $1,380,000; and stock dividends declared were $620,000. What was shareholders' equity as of December 31, 2018?

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Answers (1)

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Cadence Frederick · Answer 1

Answer: $9,182,000

Explanation: This question can be done as follows : -

Total shareholders equity = paid in capitals + other paid in capitals + retained earnings - treasury stock

Putting the values into equation we get : -

Total shareholders = $32,000 + $5,200,000 + $4,200,000 - $250,000

equity

= $9,182,000