Question

Help Save & Exit Submit As of December 31, 2018, Warner Corporation reported the following Dividends payable Treasury stock Paid-in capital-share repurchase other paid-in capital accounts Retained earnings $ 31,000 710,000 31,000 5,100,000 4,100,000 During 2019. half of the treasury stock was resold for $262.000, net income was $710,000, cash dividends declared were $1610,000, and stock dividends declared were $610,000 What would shareholders' equity be as of December 31, 2019? Multiple Choice $7.976,000 $8,883,000 o $7,883,000 O 55710,000 $570,000

Answer 1

Correct answer-----------$7,883,000

Working

	Paid in capital account-Share repurchased	Other paid in capital account	Retained earnings	Treasury stock	Total
Beginning year balance	$ 31,000.00	$ 5,100,000.00	$    4,100,000.00	$ (710,000.00)	$    8,521,000.00

.

Beginning balance	$    8,521,000.00
Net income	$       710,000.00
Dividends	$ (1,610,000.00)
Treasury stock resold	$       262,000.00
Equity at Dec 31 2019	$    7,883,000.00

.Stock dividend will not affect equity in totality.