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Question 3BE

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Intermediate Accounting (Kieso)
Found in: Page 811

Short Answer

Wilco Corporation has the following account balances at December 31, 2017.

Common stock, $5 par value $ 510,000

Treasury stock 90,000

Retained earnings 2,340,000

Paid-in capital in excess of par—common stock 1,320,000

Prepare Wilco’s December 31, 2017, stockholders’ equity section.

The total stockholders’ equity of Wilco on December 31, 2017, is $4,080,000.

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Step by Step Solution

Meaning of Stockholders’ equity

In simple words, company net worth (or shareholders' equity) measures the amount of money that the owners of the company invested into the business.

Preparing Wilco’s Stockholders’ Equity.

WILCO CORPORATION

Stockholders’ equity

December 31, 2017

Common stock, $5 par value

$ 510,000

Paid-in capital in excess

of par-common stock

1,320,000

Total paid-in capital

1,830,000

Retained earnings

2,340,000

4,170,000

Less: Treasury stock

90,000

Total stockholders’ equity

4,080,000

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