On January 1, ABC Company started the year with a $420,000 balance in Retained Earnings and a $550,000 balance in Common Stock. During the year, the company reported net income of $100,000, paid a dividend of $25,000, issued more common stock for $30,000, and borrowed $50,000 from the bank. What is total stockholders' equity at the end of the year? O $1,150,000 O $495,000 O $1,100,000 O $1,075,000
On January 1, ABC Company started the year with a $420,000 balance in Retained Earnings and a $550,000 balance in Common Stock. During the year, the company reported net income of $100,000, paid a dividend of $25,000, issued more common stock for $30,000, and borrowed $50,000 from the bank. What is total stockholders' equity at the end of the year? O $1,150,000 O $495,000 O $1,100,000 O $1,075,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, ABC Company started the year with a $420,000 balance in Retained
Earnings and a $550,000 balance in Common Stock. During the year, the company
reported net income of $100,000, paid a dividend of $25,000, issued more common stock
for $30,000, and borrowed $50,000 from the bank. What is total stockholders' equity at
the end of the year?
O $1,150,000
O $495,000
O $1,100,000
O $1,075,000
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