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Enterprises reported the following (S in 000s) as of December 31, 2016. Al accou

ID: 2557887 • Letter: E

Question

Enterprises reported the following (S in 000s) as of December 31, 2016. Al accounts have normal balances Deficit (debit balance in retained earnings) Common stock Paid-in capital-treasury stock Treasury stock at cost Paid-In capital-excess of par $1,400 3,200 3,000 330 $31,100 During 2017 (S in OOOs), net income was $9.900, 25% of the treasury stock was resold for $460; cash dividends deciared were $640; cash dividends paid were $490 What ($ in 000s) was shareholders' equity as of December 31, 2016? O $35,570 $36,230. O $32.570 O $38.370

Explanation / Answer

Calculation of Shareholder's equity as at 31st December 2016

The answer will be $35,570 as described below.

(1) Common stock = $3,200

(2) Paid in capital - excess of par = $31,100

(3) Paid in capital - Treasury stock = $3,000

(4) Retained Earnings = ($1,400)

(5) Treasury Stock = ($330)

Total Shareholders Equity = $35,570 (Sum of 1 to 5 above)