For the year ended December 31, 2020 (last year) Empire Co. showed the following equity accounts: Preferred shares, $2, 2,000 shares issued $ 50,000 Common shares, 10,000 shares issued Retained earnings $200,000 $150,000 In 2021 (this year) Empire Co. had the following transactions affecting shareholders' equity Mar 1 Issued 1,000 preferred shares for $25,000 and issued 5,000 common shares for $75,000. Dec 20 The company declared and paid the annual dividend on the preferred shares. In addition, a $1 dividend was declared and paid on the common shares. Dec 31 The company made a profit of $225,000 in 2021. Required: Compute the total shareholders' equity on December 31, 2021.
For the year ended December 31, 2020 (last year) Empire Co. showed the following equity accounts: Preferred shares, $2, 2,000 shares issued $ 50,000 Common shares, 10,000 shares issued Retained earnings $200,000 $150,000 In 2021 (this year) Empire Co. had the following transactions affecting shareholders' equity Mar 1 Issued 1,000 preferred shares for $25,000 and issued 5,000 common shares for $75,000. Dec 20 The company declared and paid the annual dividend on the preferred shares. In addition, a $1 dividend was declared and paid on the common shares. Dec 31 The company made a profit of $225,000 in 2021. Required: Compute the total shareholders' equity on December 31, 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:For the year ended December 31, 2020 (last year) Empire Co. showed the following equity
accounts:
Preferred shares, $2,2,000 shares issued $50,000
Common shares, 10,000 shares issued
Retained earnings
$200,000
$150,000
In 2021 (this year) Empire Co. had the following transactions affecting shareholders' equity:
Mar 1 Issued 1,000 preferred shares for $25,000 and issued 5,000 common shares for
$75,000.
Dec 20 The company declared and paid the annual dividend on the preferred shares. In
addition, a $1 dividend was declared and paid
on the common shares.
Dec 31 The company made a profit of $225,000 in 2021.
Required:
Compute the total shareholders' equity on December 31, 2021.
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