ABC Corporation's charter authorized 120,000 shares of common stock, par $10. During the first year, 25,000 shares were sold and issued at $18 per share; in addition, 800 shares were subscribed for at the same price. One half of the subscription price was collected during the year. At the end of the first year, reported net income was $22,000 and cash dividends of $6,000 were declared and paid. At year-end, liabilities amounted to $25,000. On the last day of the year, 100 shares of stock were purchased from a disgruntled stockholder at $22 per share (assume the cost method). At year end, what is the total amount of the company's total stockholders' equity? 480,400 478,200 O 455.400 472,200
ABC Corporation's charter authorized 120,000 shares of common stock, par $10. During the first year, 25,000 shares were sold and issued at $18 per share; in addition, 800 shares were subscribed for at the same price. One half of the subscription price was collected during the year. At the end of the first year, reported net income was $22,000 and cash dividends of $6,000 were declared and paid. At year-end, liabilities amounted to $25,000. On the last day of the year, 100 shares of stock were purchased from a disgruntled stockholder at $22 per share (assume the cost method). At year end, what is the total amount of the company's total stockholders' equity? 480,400 478,200 O 455.400 472,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![ABC Corporation's charter authorized 120,000 shares of common stock, par $10. During the
first year, 25,000 shares were sold and issued at $18 per share; in addition, 800 shares were
subscribed for at the same price. One half of the subscription price was collected during the
year. At the end of the first year, reported net income was $22,000 and cash dividends of
$6,000 were declared and paid. At year-end, liabilities amounted to $25,000. On the last day of
the year, 100 shares of stock were purchased from a disgruntled stockholder at $22 per share
(assume the cost method).
At year end, what is the total amount of the company's total stockholders' equity?
480,400
478,200
455.400
472,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5c279ba0-e699-42b5-945f-654ebd248df3%2F8f86db2d-8d50-4ed4-b8ed-7542389921c0%2Fggvupxr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ABC Corporation's charter authorized 120,000 shares of common stock, par $10. During the
first year, 25,000 shares were sold and issued at $18 per share; in addition, 800 shares were
subscribed for at the same price. One half of the subscription price was collected during the
year. At the end of the first year, reported net income was $22,000 and cash dividends of
$6,000 were declared and paid. At year-end, liabilities amounted to $25,000. On the last day of
the year, 100 shares of stock were purchased from a disgruntled stockholder at $22 per share
(assume the cost method).
At year end, what is the total amount of the company's total stockholders' equity?
480,400
478,200
455.400
472,200
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