As of December 31, 2016, Warner Corporation reported the following:

Dividends payable	$37,000
Treasury stock	770,000
Paid-in capital - share repurchase	37,000
Other paid-in capital accounts	5,700,000
Retained earnings	$4,700,000

During 2017, half of the treasury stock was resold for $274,000; net income was $770,000; cash dividends declared were $1,670,000; and stock dividends declared were $670,000.

What would shareholders' equity be as of December 31, 2017?

$10,041,000.

$9,152,000.

$6,370,000.

$9,041,000.

Solution: Please explain how and wher do tehy get the numbers from.

	Paid-in Capital Share Repurchase	Other Paid-in Capital Accounts	Retained Earnings	Treasury Stock	(Dr) Cr Total
12/31/2016	$37,000	$5,700,000	$4,700,000	$(770,000)	$9,667,000
Sale of Treasury Stock	(37,000)		(74,000)	385,000	274,000
Net Income			770,000		770,000
Cash Dividends			(1,670,000)		(1,670,000)
Stock Dividends		670,000	(670,000)
	$0	$6,370,000	$3,056,000	$(385,000)	$9,041,000

References