Common Products has just made its first issue of stock. It raised $2.0 million by selling 300,000 shares of stock to the public. These are the only shares outstanding. The par value of each share was $2. Complete the following table: (Enter your answers in dollars, not in millions.) Common Stock (par value)   ___________?  Additional paid-in capital      ___________? Retained earnings                 ___________ ? Net common equity          $2,400.000

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.