Yellow Enterprises reported the following ($ in 000s) as of December 31, 2016. A
ID: 2482277 • Letter: Y
Question
Yellow Enterprises reported the following ($ in 000s) as of December 31, 2016. All accounts have normal balances. Deficit (debit balance in retained earnings) 2,400 Common stock 3,200 Paid-in capital-treasury stock 2,500 Treasury stock at cost 260 Paid-in capital-excess of par 31,800 During 2017 ($ in 000s), net income was $9,500; 25% of the treasury stock was resold for $590; cash dividends declared were $720; cash dividends paid were $490. What ($ in 000s) was shareholders' equity as of December 31, 2017?
A. $44,210.
B. $45,210.
C. $44,340.
D. $43,850.
Explanation / Answer
Ans A $44210 Shareholder Equity As on dec 31 2017 in $ 000 Common Stock 3200 Paid in capital in excess of par 31800 Paid in capital in-Tresuary Stock 2500+525 3025 Retained Earnings 6380 Less: Tresuary stock at cost (260-65) -195 Total 44210 working As on dec 31 2016 in $ 000 Common Stock 3200 Paid in capital in excess of par 31800 Paid in capital in-Tresuary Stock 2500 Deficit balnce in Retained Earnings -2400 lLess: Tresuar stock at cost -260 Total 34840 Sold Treasury Stock 25% sold for 590 :Less Cost of Treasury Stock 25% *260 65 Paid in capital in-Tresuary Stock 525.000 Retained earnings -2400.000 Add: Net Income 9500.000 Less: Dividend declared -720.000 Ending Balance of Retained earnings 6380.000
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