Wendell Company provided the following pertaining to its recent year of operation:
Common stock with a $10,000 par value was sold for $50,000 cash.
Cash dividends totaling $20,000 were declared,of which $15,000 were paid.
Net income was $70,000.
A 5% stock dividend resulted in a common stock distribution,which had a $5,000 par value and a $23,000 market value.
Treasury stock costing $9,000 was sold for $7,000.
How much did Wendell's total stockholders' equity increase during the recent year of operation?
A)$107,000
B)$84,000
C)$80,000
D)$112,000

Question

Wendell Company provided the following pertaining to its recent year of operation:
 Common stock with a $10,000 par value was sold for $50,000 cash.
 Cash dividends totaling $20,000 were declared,of which $15,000 were paid.
 Net income was $70,000.
 A 5% stock dividend resulted in a common stock distribution,which had a $5,000 par value and a $23,000 market value.
Treasury stock costing $9,000 was sold for $7,000.
How much did Wendell's total stockholders' equity increase during the recent year of operation?
A)$107,000
B)$84,000
C)$80,000
D)$112,000

Quizplus · Accepted Answer

Stockholders' equity increase ($107,000) = Common stock issue ($50,000) - Cash dividends declared ($20,000) + Net income ($70,000) + Treasury stock sale ($7,000)

Wendell Company Provided the Following Pertaining to Its Recent Year