Question

On january 1, 2022 gucci brothers inc. Had a $500,000 credit balance in retained earnings and $600,000 balance in common stock. During 2022, the company earned net income of $100,000, declared a dividend of $15,000, and issued additional stock for $25,000. What is total stockholders’ equity on december 31, 2022?.

Answer 1

Total stockholders’ equity on December 31, 2022, is $1,21, 0000.

What is stockholders’ equity?

Retained earnings plus share capital make up the account on a company's balance sheet known as shareholders' equity. It also symbolizes the difference between the value of assets and obligations.

Gucci Brothers Inc

Statement of Shareholder's Equity

As on December 31, 2022

Complete solution set on below:

As a result, total shareholder's equity as on December 31, 2022,

is $1,21, 0000.

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