Question

Yellow Enterprises reported the following ($ in 000s) as of December 31, 2018. All accounts have normal balances.

Deficit (debit balance in retained earnings)	$	2,500
Common stock		2,200
Paid-in capital-treasury stock		1,800
Treasury stock at cost		270
Paid-in capital—excess of par		31,200

During 2019 ($ in 000s), net income was $10,600; 25% of the treasury stock was resold for $480; cash dividends declared were $790; cash dividends paid were $420.

What ($ in 000s) was shareholders' equity as of December 31, 2019?

Answer 1

The shareholders' equity as of December 31, 2019 is as follows:

	$( In 000)
Common stock	2,200
Paid-in capital—excess of par	31,200
Paid-in capital-treasury stock	1800
Sale of Treasury Stock	480
Total	35,680
Deficit (debit balance in retained earnings)	(2,500)
Net Income	10,600
Cash Dividend Paid	(420)
	43,360
Treasury stock at cost	(270)
Shareholders' equity	43,090

The shareholders' equity as of December 31, 2019 is $43,090