Question

​Milton, Inc. had the following transactions in​ 2019, its first year of​ operations: bullet Issued 14 comma 000 shares of common stock. Stock has par value of $ 0.01 per share and was issued at $ 39.00 per share. bullet Earned net income of $ 200 comma 000. bullet Paid dividends of $ 14.00 per share. At the end of​ 2019, what is total​ stockholders' equity?

Answer 1

Answer:

total stockholders equity:     732,000

Explanation:

the equiy will be the total proceeds from the shares,

plus the net income for the accountign period

less the dividend declared

14,000 shares x 39 =              546,000 total paid-in capital

net income for                        200,000

dividends                                (14,000)  

total stockholders equity:     732,000

the income increase the equity s those earnings are attributable to the business and then, the owners can distribute them.

The dividends are the amount of the declared earnings distribute among the stockholders. It decrease the equity of the company.