Blimie Corporation was organized on January 3, 2012. Blimie was authorized to is
ID: 2377358 • Letter: B
Question
Blimie Corporation was organized on January 3, 2012. Blimie was authorized to issue 50,000 shares of common stock with par value of $10 per shate. On January 4, Blimie issued 30,000 shares of common stock at $25 per share. On July 15, Blimie issued an additional 10,000 shares at $20 per share. Blimie reported income of $33,000 during 2012. In addition, Blimie declared a dividend of $.50 per share on December 31, 2012.
The Ammount reported on the Corporation's December 31, 2012 balance sheet as stockholders' equity was...
(A) $400,000.
(B) $550,000
(C) $950,000
(D) $963,000
Could you also explain how you got the answer? I'm still new to accounting and I am confused by this.
Explanation / Answer
Common Stock 30,000* 25= 750,000
Addl 10,000*20= 200,000
Add Income of 33,000
Less dividend of (30,000+10,000)*.50= 20,000
So total equity is 963,000 (D)