The following information is available from the accounting records of Pecos Company: What is the amount of stockholders' equity for Pecos Company?
A)$980,000
B)$1,204,000
C)$1,400,000
D)$1,456,000

Question

The following information is available from the accounting records of Pecos Company:  What is the amount of stockholders' equity for Pecos Company?
A)$980,000 
B)$1,204,000 
C)$1,400,000 
D)$1,456,000

Quizplus · Accepted Answer

To calculate the stockholders' equity, we need to add up the common stock, additional paid-in capital, retained earnings and treasury stock.

Common stock = $800,000 
Additional paid-in capital = $300,000 
Retained earnings = $400,000 
Treasury stock = ($100,000)

Stockholders' equity = $800,000 + $300,000 + $400,000 - $100,000 = $1,400,000

Therefore, the correct answer is C, $1,400,000.

The Following Information Is Available from the Accounting Records of Pecos