The meaning of stockholder’ equity.

Question

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Answer 1

Question

Chapter 15, Problem 15.1Q

To determine

To explain: The meaning of stockholder’ equity.

Expert Solution & Answer

Answer to Problem 15.1Q

Stockholders’ equity refers to the amount of share of the stockholders in the company’s assets. It refers to the aggregate amount after the distinction between the assets and liabilities of a company.

Explanation of Solution

Stockholders’ Equity:

Stockholders’ equity or also referred to as the shareholders’ equity in a company is the total share of a shareholder in the company’s assets after all the liabilities of the company are paid off. A stockholder owns the retained profits (or loss) from a company in the form of mentioned below three ways:

Retained earnings: It refers to the amount of profit which is shared among the stockholders’ of the company from the total profit earned in a given accounting year.
Capital accounted: The total amount of capital a shareholder accounts in the company or has given as investment in the company refers to the capital accounted for by the shareholder.
Accumulated income: Another source of income (or loss) for the shareholder can be from the revaluation done of different assets and liabilities in the company that results to build accumulated or comprehensive capital in the company.

Conclusion

Therefore, the stockholders’ are in a way the owner in the company up to the amount of capital invested.

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Alanood Company wants to prepare interim financial statements for the first quarter of 2020 but would like to avoid making a physical count of inventory. During the last five years the company's gross profit rate averaged 36%. The following information for the years first quarter is available from its records: January 1 beginning inventory $150,130 Purchases $472,600 Purchase returns $6,525 Transportation in $3,450 Sales $595,575 Sales returns $4,725 Use the gross profit method to prepare an estimate of the company's March 31 inventory.

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Answer 2

Question

Chapter 15, Problem 15.1Q

To determine

To explain: The meaning of stockholder’ equity.

Expert Solution & Answer

Answer to Problem 15.1Q

Stockholders’ equity refers to the amount of share of the stockholders in the company’s assets. It refers to the aggregate amount after the distinction between the assets and liabilities of a company.

Explanation of Solution

Stockholders’ Equity:

Stockholders’ equity or also referred to as the shareholders’ equity in a company is the total share of a shareholder in the company’s assets after all the liabilities of the company are paid off. A stockholder owns the retained profits (or loss) from a company in the form of mentioned below three ways:

Retained earnings: It refers to the amount of profit which is shared among the stockholders’ of the company from the total profit earned in a given accounting year.
Capital accounted: The total amount of capital a shareholder accounts in the company or has given as investment in the company refers to the capital accounted for by the shareholder.
Accumulated income: Another source of income (or loss) for the shareholder can be from the revaluation done of different assets and liabilities in the company that results to build accumulated or comprehensive capital in the company.

Conclusion

Therefore, the stockholders’ are in a way the owner in the company up to the amount of capital invested.

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Answer 3

Question

Chapter 15, Problem 15.1Q

To determine

To explain: The meaning of stockholder’ equity.

Expert Solution & Answer

Answer to Problem 15.1Q

Stockholders’ equity refers to the amount of share of the stockholders in the company’s assets. It refers to the aggregate amount after the distinction between the assets and liabilities of a company.

Explanation of Solution

Stockholders’ Equity:

Stockholders’ equity or also referred to as the shareholders’ equity in a company is the total share of a shareholder in the company’s assets after all the liabilities of the company are paid off. A stockholder owns the retained profits (or loss) from a company in the form of mentioned below three ways:

Retained earnings: It refers to the amount of profit which is shared among the stockholders’ of the company from the total profit earned in a given accounting year.
Capital accounted: The total amount of capital a shareholder accounts in the company or has given as investment in the company refers to the capital accounted for by the shareholder.
Accumulated income: Another source of income (or loss) for the shareholder can be from the revaluation done of different assets and liabilities in the company that results to build accumulated or comprehensive capital in the company.

Conclusion

Therefore, the stockholders’ are in a way the owner in the company up to the amount of capital invested.

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Answer 4

Question

Chapter 15, Problem 15.1Q

To determine

To explain: The meaning of stockholder’ equity.

Expert Solution & Answer

Answer to Problem 15.1Q

Stockholders’ equity refers to the amount of share of the stockholders in the company’s assets. It refers to the aggregate amount after the distinction between the assets and liabilities of a company.

Explanation of Solution

Stockholders’ Equity:

Stockholders’ equity or also referred to as the shareholders’ equity in a company is the total share of a shareholder in the company’s assets after all the liabilities of the company are paid off. A stockholder owns the retained profits (or loss) from a company in the form of mentioned below three ways:

Retained earnings: It refers to the amount of profit which is shared among the stockholders’ of the company from the total profit earned in a given accounting year.
Capital accounted: The total amount of capital a shareholder accounts in the company or has given as investment in the company refers to the capital accounted for by the shareholder.
Accumulated income: Another source of income (or loss) for the shareholder can be from the revaluation done of different assets and liabilities in the company that results to build accumulated or comprehensive capital in the company.

Conclusion

Therefore, the stockholders’ are in a way the owner in the company up to the amount of capital invested.

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Answer 5

Chapter 15, Problem 15.1Q

To determine

To explain: The meaning of stockholder’ equity.

Expert Solution & Answer

Answer to Problem 15.1Q

Stockholders’ equity refers to the amount of share of the stockholders in the company’s assets. It refers to the aggregate amount after the distinction between the assets and liabilities of a company.

Explanation of Solution

Stockholders’ Equity:

Stockholders’ equity or also referred to as the shareholders’ equity in a company is the total share of a shareholder in the company’s assets after all the liabilities of the company are paid off. A stockholder owns the retained profits (or loss) from a company in the form of mentioned below three ways:

Retained earnings: It refers to the amount of profit which is shared among the stockholders’ of the company from the total profit earned in a given accounting year.
Capital accounted: The total amount of capital a shareholder accounts in the company or has given as investment in the company refers to the capital accounted for by the shareholder.
Accumulated income: Another source of income (or loss) for the shareholder can be from the revaluation done of different assets and liabilities in the company that results to build accumulated or comprehensive capital in the company.

Conclusion

Therefore, the stockholders’ are in a way the owner in the company up to the amount of capital invested.

Answer 6

Chapter 15, Problem 15.1Q

To determine

To explain: The meaning of stockholder’ equity.

Expert Solution & Answer

Answer to Problem 15.1Q

Stockholders’ equity refers to the amount of share of the stockholders in the company’s assets. It refers to the aggregate amount after the distinction between the assets and liabilities of a company.

Explanation of Solution

Stockholders’ Equity:

Stockholders’ equity or also referred to as the shareholders’ equity in a company is the total share of a shareholder in the company’s assets after all the liabilities of the company are paid off. A stockholder owns the retained profits (or loss) from a company in the form of mentioned below three ways:

Retained earnings: It refers to the amount of profit which is shared among the stockholders’ of the company from the total profit earned in a given accounting year.
Capital accounted: The total amount of capital a shareholder accounts in the company or has given as investment in the company refers to the capital accounted for by the shareholder.
Accumulated income: Another source of income (or loss) for the shareholder can be from the revaluation done of different assets and liabilities in the company that results to build accumulated or comprehensive capital in the company.

Conclusion

Therefore, the stockholders’ are in a way the owner in the company up to the amount of capital invested.

Answer 7

Chapter 15, Problem 15.1Q

To determine

To explain: The meaning of stockholder’ equity.

Answer 8

Expert Solution & Answer

Answer to Problem 15.1Q

Stockholders’ equity refers to the amount of share of the stockholders in the company’s assets. It refers to the aggregate amount after the distinction between the assets and liabilities of a company.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Stockholders’ Equity:

Stockholders’ equity or also referred to as the shareholders’ equity in a company is the total share of a shareholder in the company’s assets after all the liabilities of the company are paid off. A stockholder owns the retained profits (or loss) from a company in the form of mentioned below three ways:

Retained earnings: It refers to the amount of profit which is shared among the stockholders’ of the company from the total profit earned in a given accounting year.
Capital accounted: The total amount of capital a shareholder accounts in the company or has given as investment in the company refers to the capital accounted for by the shareholder.
Accumulated income: Another source of income (or loss) for the shareholder can be from the revaluation done of different assets and liabilities in the company that results to build accumulated or comprehensive capital in the company.

Answer 12

Conclusion

Therefore, the stockholders’ are in a way the owner in the company up to the amount of capital invested.

Answer 13

Ch. 15 - Prob. 15.1Q Ch. 15 - What are the retained earnings of a firm?Ch. 15 - Prob. 15.3Q Ch. 15 - Prob. 15.4Q Ch. 15 - Does an entity have to legally dissolve treasury...Ch. 15 - Prob. 15.6Q Ch. 15 - Prob. 15.7Q Ch. 15 - Prob. 15.8Q Ch. 15 - Prob. 15.9Q Ch. 15 - Prob. 15.10Q

The meaning of stockholder’ equity.

To explain: The meaning of stockholder’ equity.

Answer to Problem 15.1Q

Explanation of Solution

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