On December 1, 2011, Millstone Corporation invested $45,000 in a new delivery truck. The truckis being depreciated at a monthly rate of $500. During 2011, the company issued stock for $60,000and declared dividends of $5,000. Its net income in 2011 was $70,000. Millstone’s ending RetainedEarnings balance as reported in its December 31, 2011, balance sheet was $90,000. Its beginningCapital Stock balance on January 1, 2011, was $200,000. Given this information, determine thetotal stockholders’ equity reported in the company’s balance sheet dated December 31, 2011.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On December 1, 2011, Millstone Corporation invested $45,000 in a new delivery truck. The truck
is being depreciated at a monthly rate of $500. During 2011, the company issued stock for $60,000
and declared dividends of $5,000. Its net income in 2011 was $70,000. Millstone’s ending Retained
Earnings balance as reported in its December 31, 2011, balance sheet was $90,000. Its beginning
Capital Stock balance on January 1, 2011, was $200,000. Given this information, determine the
total stockholders’ equity reported in the company’s balance sheet dated December 31, 2011.

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