Question

As of December 31, 2018, Warner Corporation reported the following:
  

Dividends payable	$	23,000
Treasury stock		630,000
Paid-in capital—share repurchase		23,000
Other paid-in capital accounts		4,300,000
Retained earnings		3,300,000

  
During 2019, half of the treasury stock was resold for $246,000; net income was $630,000; cash dividends declared were $1,530,000; and stock dividends declared were $530,000.
  
What would shareholders' equity be as of December 31, 2019?

Answer 1

• All working forms part of the answer
• Working

	Balance as on 31 Dec , 2018	Treasury Stock Resold	Net Income	Cash Dividend	Stock Dividend	Balance as on 31 Dec , 2019
Treasury stock	$          630,000.00	$      (315,000.00)				$                    315,000.00
Paid-in capital—share repurchase	$            23,000.00	$        (23,000.00)				$                                     -
Other paid-in capital accounts	$      4,300,000.00				$          530,000.00	$                4,830,000.00
Retained earnings	$      3,300,000.00	$        (46,000.00)	$        630,000.00	$ (1,530,000.00)	$       (530,000.00)	$                1,824,000.00
TOTAL	$      6,993,000.00	$        246,000.00	$        630,000.00	$ (1,530,000.00)	$                           -	$                6,339,000.00 = ANSWER

• Answer

Other paid-in capital accounts	$      4,830,000.00
Retained earnings	$      1,824,000.00
Total	$      6,654,000.00
Less: Treasury Stock	$          315,000.00
Total Stockholder's Equity	$      6,339,000.00 = Answer