Quiz Saved Help Save& Exit Subm As of December 31,2018, Warner Corporation repor

Question

Quiz Saved Help Save& Exit Subm 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 $ 24,000 640,000 24,000 4,400,000 3,400,000 During 2019, half of the treasury stock was resold for $248,000; net income was $640,000 cash dividends declared were $1,540,000; and stock dividends declared were $540,00o. What would shareholders' equity be as of December 31, 2019 Multiple Choice $7.532000 $6,604,000 30 44n ? F3

Explanation / Answer

Correct answer is $65,32,000 Shareholder's equity December 31, 2019 = Shareholder's equity December 31, 2018 + Resold 2019 Treasury Stock + 2019 Net Income - 2019 Cash dividend = $71,84,000 + $2,48,000 + $6,40,000 - $15,40,000 = $65,32,000 Shareholder's equity December 31, 2018 Paid - in capital - Share repurchase $             24,000 Add: Other paid - capital accounts $       44,00,000 Add: Retained earnings $       34,00,000 Less: Treasury stock $          6,40,000 Total Shareholder's Equity $       71,84,000

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