Following is an incomplete statement of stockholders\' equity for Stockton Corpo
ID: 2474554 • Letter: F
Question
Following is an incomplete statement of stockholders' equity for Stockton Corporation:
Common stock
Additional paid in capital
Retained earnings
# of shares
Amount
Balance, January 1
?
$500,000
$150,000
$250,000
Net income
Sales of common stock
10,000
Cash dividends declared
Balance, December 31
The following information is also available:
1. Stockton's stock has a $10 par value.
2. Net income for the year was $40,000.
3. The common stock issued during the year was sold on July 1 at $22 per share.
4. Two dividends were paid during the year: (a) $1.50 per share declared on March 1, paid on April 1 to stockholders of record on March 20 and (b) $1.50 per share declared on August 6, paid on September 1 to stockholders of record on April 21.
What is the balance in the stock account at the end of the year?
$500,000
$510,000
$600,000
$720,000
none of the above
Refer to the information above for Stockton Corporation.
What is the balance in Retained Earnings as of the end of the year?
$290,000
$390,000
$125,000
$215,000
none of the above
Refer to the information above for Stockton Corporation.
What is total contributed capital (or total paid in capital) as of the end of the year?
$600,000
$200,000
$270,000
$870,000
none of the above
Common stock
Additional paid in capital
Retained earnings
# of shares
Amount
Balance, January 1
?
$500,000
$150,000
$250,000
Net income
Sales of common stock
10,000
Cash dividends declared
Balance, December 31
Explanation / Answer
a.
$500,000
b.
$390,000
.d
$870,000