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Captain Morgan Corporation was organized on January 1, 201 7 . During 201 7 , Captain...

Captain Morgan Corporation was organized on January 1, 201 7 . During 201 7 , Captain had the following transactions relating to shareholders' equity: (1) i ssued 10,000 shares of common stock at $7 per share ; (2) i ssued 20,000 shares of common stock at $8 per share ; (3) r eported net income of $100,000 for 201 7 ; (4) p aid dividends of $50,00 0 ; (5) p urchased 3,000 shares of treasury stock at $10 per share. T otal shareholders' equity at the end of 201 7 is:   

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Expert Solution

Calculation to Total Shareholder’s Equity at the end of 2017

Common Stock Issued = 10,000 shares @ $7 per share    = $70,000

Common Stock Issued = 20,000 shares @ $8 per share    = $160,000

Net income for the year                                                          = $100,000

Dividends Paid                                                                          =($50,000)

Treasury stock purchase= 3000 shares @ $10 per share = ($30,000)

                    Total Shareholder’s Equity as at end of 2017 = $250,000

ekkarill92 answered 1 year ago
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