On January 1, 2015, Visaries Corporation was established. On that day, it issued 200,000 shares at a price of USD15 per share (400,000 shares were authorized with a par value of USD10). Visaries reported net income of USD750,000 and paid cash dividends of USD380,000 from January 1, 2015 to December 31, 2015. Visaries purchased 12,000 treasury shares at USD12 per share on February 9, 2016. On December 31, 2016, 8,000 treasury shares were sold at USD8 per share. Calculate and determine the total shareholders' equity as of December 31, 2016. Please the solution.
On January 1, 2015, Visaries Corporation was established. On that day, it issued 200,000 shares at a price of USD15 per share (400,000 shares were authorized with a par value of USD10). Visaries reported net income of USD750,000 and paid cash dividends of USD380,000 from January 1, 2015 to December 31, 2015. Visaries purchased 12,000 treasury shares at USD12 per share on February 9, 2016. On December 31, 2016, 8,000 treasury shares were sold at USD8 per share. Calculate and determine the total shareholders' equity as of December 31, 2016. Please the solution.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2015, Visaries Corporation was established. On that day, it issued 200,000 shares at a price of USD15 per share (400,000 shares were authorized with a par value of USD10). Visaries reported net income of USD750,000 and paid cash dividends of USD380,000 from January 1, 2015 to December 31, 2015. Visaries purchased 12,000 treasury shares at USD12 per share on February 9, 2016. On December 31, 2016, 8,000 treasury shares were sold at USD8 per share. Calculate and determine the total shareholders' equity as of December 31, 2016. Please the solution.
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