Question

On December 31, 2016, the accounts of Leuz Architect Services showed credit balances in its Common Stock and Retained Earnings accounts of $60,000 and $30,000, respectively. The company’s stock issuances for 2017 totaled $12,000, and it paid $10,000 cash dividends in 2017. During 2017, the company had net income of $33,000. What is the total stockholders’ equity for Leuz Architect Services at December 31, 2017?

Question 9 options:

	$72,000
	$53,000
	$125,000
	$135,000

Answer 1

Statement of stockholder's equity

	Common stock	Retained earnings	Total
Dec 31, 2016	60,000	30,000	90,000
Stock issued	12,000		12,000
Net income		33,000	33,000
Dividend		-10,000	-10,000
Dec 31, 2017	72,000	53,000	125,000

Total stockholder's equity at dec 31, 2017 = $125,000

Third option is correct