In: Accounting
Yellow Enterprises reported the following ($ in thousands) as of December 31, 2021. All accounts have normal balances.
Deficit (debit balance in retained earnings) | $ | 3,000 | |
Common stock | 2,000 | ||
Paid-in capital—share repurchase | 1,000 | ||
Treasury stock (at cost) | 400 | ||
Paid-in capital—excess of par | 30,000 | ||
During 2022 ($ in thousands), net income was $9,000; 25% of the
treasury stock was resold for $450; cash dividends declared were
$600; cash dividends paid were $500.
What ($ in thousands) was shareholders' equity as of December 31,
2022?
Multiple Choice
$38,100.
$37,450.
$38,450.
$38,350.
Answer: $38,450
Explanation
Shareholders’ equity as of December 31, 2021 | |
$ | |
Common stock | 2,000.00 |
Paid-in capital–excess of par | 30,000.00 |
Paid-in capital—share repurchase | 1,000.00 |
Retained earnings | (3,000.00) |
Treasury stock | (400.00) |
Total shareholders’ equity on December 31, 2021 | 29,600.00 |
Shareholders’ equity as of December 31, 2022 | |
$ | |
Shareholders’ equity on December 31, 2021 | 29,600.00 |
Net income | 9,000.00 |
Sale of treasury stock | 450.00 |
Dividends declared | (600.00) |
Total shareholders’ equity on December 31, 2022 | 38,450.00 |