Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wendell Company provided the following pertaining to its accounting year that ended December 31, 2019: Common stock with a $10,000 par value was sold for

Wendell Company provided the following pertaining to its accounting year that ended December 31, 2019:

  • Common stock with a $10,000 par value was sold for $51,000 cash
  • Cash dividends totaling $20,100 were declared, of which $15,100 were paid
  • Net income was $71,000
  • A 5% stock dividend resulted in a common stock distribution, which had a $5,000 par value and a $23,100 market value
  • Treasury stock repurchased in a prior year for $9,100 was resold for $7,100 and in the journal entry to record the sale, Additional paid-in capital was debited for the amount of the difference between the repurchase price and the resale price

What is the amount of increase in Wendells total stockholders equity for the year ended December 31, 2019?

Multiple Choice

  • $90,900.

  • $85,900.

  • $114,000.

  • $109,000.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

2nd Edition

0471347744, 978-0471347743

More Books

Students also viewed these Accounting questions

Question

What background experience do you have?

Answered: 1 week ago