Question

Jack Gregoire Jack Gregoire​, an​ attorney, has a law​ corporation, Jack Gregoire Jack Gregoire​, ​Attorney, Inc., that began the year with total assets of $ 135 comma 000 $135,000​, total liabilities of $ 74 comma 000 $74,000​, and​ stockholders' equity of $ 61 comma 000 $61,000. During the​ year, Jack Gregoire Jack Gregoire​, ​Attorney, Inc., earned revenue of $ 95 comma 000 $95,000 and paid expenses of $ 32 comma 000 $32,000. Jack Gregoire Jack Gregoire​, ​Attorney, Inc., also sold an additional $ 22 comma 000 $22,000 of stock and paid $ 18 comma 000 $18,000 in dividends. How much is the​ stockholders' equity in Jack Gregoire Jack Gregoire​, ​Attorney, Inc., at​ year's end?

Answer 1

Beginning stockholder's equity = $61,000

Revenue earned during the year = $95,000

Expenses paid during the year = $32,000

Additional stock sold = $22,000

Dividend paid during the year = $18,000

Ending stockholder's equity = Beginning stockholder's equity + Additional stock sold + Revenue earned during the year - Expenses paid during the year - Dividend paid during the year

= 61,000 + 22,000 + 95,000 - 32,000 - 18,000

= $128,000

Ending stockholder's equity = $128,000