Question

Question 26 Not yet answered Marked out of 1.00 P Flag question Richards Corporation had the following balances at December 31, 2020: $212,000 $1,255,000 Goodwill 6,000 Common stock 5,000 120,000 Prepaid Insurance 35,000 Accounts payable 24,000 50,000 Property, plant, and equipment Interest payable Line of credit, due on demand Customer list Additional paid-in capital Salaries payable Cash and cash equivalents Pension liability Inventory Land held for future expansion 545,000 Retained earnings December 31, 2019 12,000 Accumulated depreciation 410,000 145,000 85,000 Accounts receivable, net 65,000 Accumulated other comprehensive loss 436,000 Cash and cash equivalents Note payable, due in annual installments of $25,000 136,000 plus interest on December 31 120,000 5,000 85,000 675,000 Net income for 2020 totaled $325,000. The company declared dividends of $50,000 on December 15, 2019. How much did Richards Corporation report as Stockholders' equity in the 2020 Balance sheet? Select one: a. $955,000 b. $1,290,000 c. $960,000 d. $1,230,000 0 e. $1,280,000

Answer 1

Calculate total Stockholder's equity

Common Stock	5000
Additional paid in capital	545000
Retained earnings (410000+325000-50000)	685000
Accumulated other comprehensive income	-5000
Total Stockholder's equity	1230000

So answer is d) $1230000