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Financial Accounting help. 10 points.?

What is the total stockholders' equity based on the following data?

Common Stock $510,000

Excess of Issue Price Over Par $375,000

Retained Earnings (deficit) (50,000)

A.$935,000

B.$885,000 (my answer)

C.$835,000

D.$560,000

Alma Corp. issues 1,000 shares of $10 par value common stock at $16 per share. When the transaction is recorded, credits are made to:

A.Common Stock $16,000.

B.Common Stock $10,000 and Paid-in Capital in Excess of Par Value $6,000. (my answer)

C.Common Stock $10,000 and Paid-in Capital in Excess of Stated Value $6,000.

D.Common Stock $10,000 and Retained Earnings $6,000.

1 Answer

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  • 8 years ago
    Favorite Answer

    I think the first one is

    $510,000 + $375,000 - $50,000 = $835,000

    (Retained Earnings is also part of Stockholders' Equity.)

    ------------

    The second one you have correct.

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