Question

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

Deficit (debit balance in retained earnings) $2,400

Common stock 2,100

Paid-in capital treasury stock 2,700

Treasury stock at cost 350

Paid-in capital-excess of par 31,100

During 2019 ($ in 000s) net income was $10,100. 25% of the treasury stock was resold for $610: cash dividends declared were $690: cash dividends paid were $420. What ($ in 000s) was shareholders' equity as of December 31,2019? The right answer is $43170, why??

Answer 1

--Total Stockholder's Equity on 31 Dec 2019 = $ 43,170

--This is shown below

	Balance on 31 Dec 18	Net Income 2019	Sale of Treasury Stock	Cash Dividends	Balance on 31 Dec 19 [ANSWER]
Common Stock	$2,100				$2,100
Paid in capital in excess of par	$31,100				$31,100
Paid in capital treasury stock	$2,700		$523		$3,223
Retained earnings	($2,400)	$10,100		($690)	$7,010
Treasury Stock	($350)		$88		($263)
Total Stockholder's Equity	$33,150				$43,170 = Answer