At the end of the accounting period, Isaac Company had a balance of $4,000 in its common stock account, additional paid in capital of $4,000, retained earnings of $3,000, and $1,000 of treasury stock. The total amount of stockholders' equity is: $10,000. $13,000. $12,000. $8,000

Question

Adam Schneider

Business

17 January, 01:07

At the end of the accounting period, Isaac Company had a balance of $4,000 in its common stock account, additional paid in capital of $4,000, retained earnings of $3,000, and $1,000 of treasury stock. The total amount of stockholders' equity is: $10,000. $13,000. $12,000. $8,000

+1

Answers (1)

Know the Answer?

Zackary · Answer 1

The total amount of stockholders' equity is: $10,000

Explanation:

The accounts and values included in stockholders' equity are:

Common stock 4,000 (1) Paid in capital 4,000 (2) Treasury stock - 1,000 (3) Retained earnings 3,000 (4)

Total stockholders' equity 10,000

1 - Nominal value of outstanding shares.

2 - Difference between the price paid by stockholders when shares were issued and nominal value.

3 - Shares recovered by the company.

4 - Earning accumulated by the company.