Cole Corporation was organized on January 1, Year 1. The company was authorized to issue 100,000 shares of $1 par value common stock. During the year, the company had the following transactions relating to stockholders’ equity:Issued 40,000 shares of common stock at $8 per share.Reported a net income of $60,000.Paid dividends of $30,000.Purchased 5,000 shares of treasury stock at $10 per share.What is total stockholders’ equity at the end of Year 1? Multiple Choice $300,000 $350,000 $400,000 $460,000

Retained earnings = Net Income - Dividend paid = $60,000 - $30,000 = $30,000

Answered: Cole Corporation was organized on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cole Corporation was organized on January 1, Year 1. The company was authorized to issue 100,000 shares of $1 par value common stock. During the year, the company had the following transactions relating to stockholders’ equity:

Issued 40,000 shares of common stock at $8 per share.
Reported a net income of $60,000.
Paid dividends of $30,000.
Purchased 5,000 shares of treasury stock at $10 per share.

What is total stockholders’ equity at the end of Year 1?

Multiple Choice

$300,000
$350,000
$400,000
$460,000

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